Freddie Mac Sold $1.4B in Nonperforming Loans

Freddie Mac has sold $1.4 billion in deeply delinquent, nonperforming loans.

The Nationstar Mortgage-serviced loans were offered as seven separate pools of mortgage loans. Community Loan Fund, a New Brunswick, N.J.-based nonprofit financial institution, won the bid for two Extended Timeline Pool Offerings. The two pools consisted of Florida mortgage loans with a total unpaid principal balance of $64.6 million, the agency announced in a press release Wednesday.

Two unnamed for-profit entities were the winning bidders for five Standard Pool Offerings, with a total unpaid principal balance of $1.2 billion.

The loans have been delinquent for an average of four years. The sale consisted of two transactions, an Extended Timeline Pool Offering on March 10 and a Standard Pool Offering on Feb. 25, after Freddie Mac began marketing the transaction to potential bidders on Jan. 21.

The transactions are projected to settle in April and May 2016.