Today Freddie Mac announced a $1.2 billion auction of deeply delinquent non-performing loans (NPLs), and we're calling all eligible bidders.
We've offered more than $3 billion of NPLs for sale through the end of July 2015 and we continue to work to broaden participation in our auctions by marketing our transactions to a extensive investor group – including community-based organizations, nonprofits and women- and minority-owned businesses.
Freddie Mac's NPL sales program was designed to:
How the Auctions Work
Our NPLs are sold through a competitive auction process and winning bids are chosen on the basis of economics. NPL pools are offered in two forms:
All bidders must be pre-approved to participate in our auctions. Servicers used by bidders must also meet FHFA requirements for NPL sales, which are designed to improve borrower outcomes and stabilize communities.
There is currently a strong market for NPL sales and we're working hard to meet this demand in a way that balances taxpayer interests with borrower needs and neighborhood stability.
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