Freddie Mac has launched an auction of $1.2 billion of nonperforming loans, while Fannie Mae has announced the two winners of its recent auction of $1.24 billion of nonperforming loans.
Freddie Mac will accept bids on its deeply delinquent loans in two segments. Bids can be submitted through Dec. 2 on five pools of geographically diversified standard pool offerings. Bids can be submitted through Dec. 16 on the second grouping, which consists of two pools of geographically concentrated extended timeline pool offerings; this offering type is targeted to participation from smaller investors, including minority- and women-owned businesses.
Wells Fargo is the servicer for all the Freddie Mac pools to be auctioned. Wells Fargo Securities, JPMorgan Securities and First Financial Network are financial advisers to Freddie Mac on the sale.
In the Fannie Mae auction, Fortress Investment Group's New Residential Investment Corp. will acquire $654.2 million of nonperforming loans, split into two separate pools. Goldman Sachs won the auction for the other pool, totaling $588.4 million of NPLs.
"The nonperforming loans included in this sale are severely delinquent and despite our ongoing efforts to offer loss mitigation on these loans, they remain nonperforming," Joy Cianci, senior vice president for credit portfolio management at Fannie Mae, said in a news release.
Both sales transactions are expected to close on Dec. 7.
Credit Suisse Securities, Bank of America Merrill Lynch, JPMorgan Chase Securities and Williams Capital Group were financial advisers to Fannie Mae.