FEDERAL HOME 8.375% NON CUM PERP PRF OTCMKTS: FMCKJ sells $22 Million of NPLs in Extended Timeline Pool Offering

342

FEDERAL HOME 8.375% NON CUM PERP PRF OTCMKTS: FMCKJ makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers.

FEDERAL HOME 8.375% NON CUM PERP PRF OTCMKTS: FMCKJ On May 24, 2019 announced it sold via auction 118 non-performing residential first lien loans (NPLs) serviced by NewRez LLC, doing business as Shellpoint Mortgage Servicing to Matawin Ventures XXVII, LLC. The sale is part of Freddie Mac’s Extended Timeline Pool Offering (EXPO®) and the transaction is expected to settle in July 2019. Freddie Mac, through its advisors, began marketing the transaction on April 11, 2019 to potential bidders, including non-profits and Minority, Women, Disabled, LGBT, Veteran or Service-Disabled Veteran-Owned Businesses (MWDOBs), neighborhood advocacy organizations and private investors active in the NPL market.

Given the delinquency status of the loans, the borrowers have likely been evaluated previously for or are already in various stages of loss mitigation, including modification or other alternatives to foreclosure, or are in foreclosure. Mortgages that were previously modified and subsequently became delinquent comprise approximately 54 percent of the pool balance. Additionally, purchasers are required to solicit distressed borrowers for additional assistance except in limited cases and ensure all pending loss mitigation actions are completed.

Advisors to Freddie Mac on the transaction are BofA Securities, Inc. and First Financial Network, Inc., a woman-owned business.

Freddie Mac’s seasoned loan offerings are focused on reducing less-liquid assets in the company’s mortgage-related investments portfolio in an economically sensible way. This includes sales of NPLs, securitizations of re-performing loans (RPLs) and structured RPL transactions.

To date, Freddie Mac has sold $8 billion of NPLs and securitized more than $52 billion of RPLs consisting of (i) $29 billion via fully guaranteed PCs, (ii) $20 billion via Seasoned Credit Risk Transfer (SCRT) senior/sub securitizations, and (iii) $3 billion via Seasoned Loan Structured Transaction (SLST) offerings. Requirements guiding the servicing of these transactions are focused on improving borrower outcomes and stabilizing communities.

FEDERAL HOME 8.375% NON CUM PERP PRF OTCMKTS: FMCKJ On May 23, 2019 announced today that it issued its Monthly Volume Summary for April 2019, which provides information on Freddie Mac’s mortgage-related portfolios, securities issuance, risk management, delinquencies, debt activities, and other investments.

FEDERAL HOME 8.375% NON CUM PERP PRF OTCMKTS: FMCKJ recently priced a new offering of Structured Pass-Through Certificates (K Certificates), which are multifamily mortgage-backed securities. The company expects to issue approximately $1.2 billion in K Certificates (K-092 Certificates), which are expected to settle on or about May 31, 2019.

The K-092 Certificates are backed by corresponding classes issued by the FREMF 2019-K92 Mortgage Trust (K-92 Trust) and guaranteed by Freddie Mac. The K-92 Trust will also issue certificates consisting of the Class X2-A, Class X2-B, Class B, Class C, Class D and Class R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-092 Certificates.

Freddie Mac Multifamily is a leading issuer of agency-guaranteed structured multifamily securities. K-Deals are part of the company’s business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds. K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.

LEAVE A REPLY