Freddie Mac has sold roughly $1.2 billion worth of nonperforming loans to three investors, and is continuing to market an additional smaller pool of distressed mortgages reserved for community and nonprofit buyers.

VRMTG ACQ, a repeat buyer affiliated with women- and minority-owned business VWH Capital Management, was the winning bidder for two of the pools with unpaid principal balances of $320 million and nearly $162 million. Truman 2021 SC9 won the bid for a nearly $504 million pool and MCLP Asset Co. purchased a more than $197 million pool.

The broker price opinion-based combined loan-to-value ratios for the pools ranged from 42% to 68%. The ranges for average months delinquent and loan size respectively were 23-36 and $129,200-$160,900.

The range for cover (second highest) bids expressed as a percentage of the unpaid principal balance was roughly between 90% and 110%. All pools had diversified, national geographic distributions. Select Portfolio Servicing and affiliates of NewRez and Computershare have been servicing the mortgages involved in the sale.

Sales outcomes for nonperforming loans are drawing more attention from the Biden administration in line with new affordable housing goals, which call for more distressed property sales to community, nonprofit and minority investors. The bid deadline for the smaller group of nonperforming loans Freddie is reserving for such buyers in line with its Extended Timeline Pool Offering program is Nov. 16. Freddie also, through advisors, marketed its standard offering to these types of investors and included disabled, LGBT and veteran-owned businesses in this group.

Most of the loans in the standard offering being sold to VRMTG ACQ, Truman 2021 SC9 and MCLP Asset Co. were likely evaluated for loss mitigation that will be honored after the sale, or are in foreclosure. Previously modified mortgages with subsequent delinquencies constituted 64% of the aggregate pool balance.

VWH was founded by Vivien Huang, the former head of structured mortgage products at JPMorgan Chase.

Source link