Freddie Mac recently announced the sale of 1,611 deeply delinquent nonperforming loans (NPLs) serviced by JP Morgan Chase Bank NA from its mortgage investment portfolio.
The loans were sold via auction on Oct. 7. The transaction is expected to be final in December, the company says in a release.
These loans have been delinquent for approximately two years, on average. Many are already in various stages of loss mitigation, including modification or other alternatives to foreclosure, or are in foreclosure. About 40% of the loans were previously modified, the company says.
The aggregate pool is geographically diverse and has a loan to value (LTV) of approximately 91% based on broker price opinion.
The loans were sold as two separate pools and investors had the flexibility to bid on one pool or both pools, or bid on the aggregate of both pools.
Pool 1 consisted of 1,180 loans with combined UPB of $209.4 million. These loans had a combined LTV (CLTV) of less than or equal to 110%. This pool was purchased by Pretium Mortgage Credit Partners, Freddie Mac reports.
Pool 2 consisted of 431 loans with combined UPB of $95.2 million. It comprised of loans with CLTV greater than 110%. This pool was acquired by Bayview Acquisitions LLC, Freddie Mac reports.