Community Loan Fund of New Jersey Inc., a nonprofit, is the winning bidder on a pool of 189 deeply delinquent nonperforming loans (NPLs) recently auctioned by Freddie Mac.
The loans – which have a total unpaid principal balance of about $43.7 million – are currently being serviced by Bayview Loan Servicing. The transaction is expected to settle in September.
The sale is part of Freddie Mac’s Extended Timeline Pool Offerings, which are designed to attract minority- and women-owned businesses, nonprofits, neighborhood advocacy funds and private investors active in the NPL market.
The loans have been delinquent for almost five years, on average, and many of the borrowers are likely already in some stage of loss mitigation.
Mortgages that were previously modified and subsequently became delinquent comprise approximately 33% of the aggregate pool balance.
Most of the properties that are secured by the loans are in Florida.
Through the first quarter of this year, Freddie Mac sold about $4.3 billion in NPLs as part of its strategy to reduce taxpayer exposure.