Freddie Mac launches first multi-servicer NPL auction.
Global Banking News-September 12, 2016--Freddie Mac launches first multi-servicer NPL auction
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Global Banking News - 12 September 2016
Freddie Mac (OTCQB: FMCC) has announced the launch of a USD1.1bn non-performing loan (NPL) transaction, an auction of seasoned non-performing residential whole loans held in Freddie Mac's mortgage investment portfolio.
The NPLs are being marketed through five pools, including four Standard Pool Offerings (SPO) and one Extended Timeline Pool Offering (EXPO) that encourages smaller investors, including non-profits and minority and women-owned businesses (MWOBs). The NPLs are currently serviced by Wells Fargo Bank, N.A (NYSE: WFC).or Ditech Financial LLC.
Bids are due from qualified bidders on September 29, 2016 for the SPO offerings, and October 13, 2016, for the EXPO offering. The sales are expected to settle in December 2016. The winning bidder will be determined based on financial condition, subject to meeting Freddie Mac's internal reserve levels.
Advisors to Freddie Mac on the transaction are Wells Fargo Securities, Llc (NYSE: WFC) and First Financial Network, Inc.
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