Freddie Mac auctioned off 1,052 delinquent nonperforming loans serviced by Ocwen on May 21 as part of its Standard Pool Offerings.
The loans' aggregate unpaid principal balance is $201 million. LSF9 Mortgage Holdings was the winning bidder.
The sale is expected to close in July, subject to the Federal Housing Finance Agency NPL sale requirements. It is Freddie's third sale of deeply delinquent loans from its mortgage investment portfolio this year.
These loans have been delinquent for three years on average. Those auctioned were offered as a single pool of mortgage loans. Previously modified mortgages that later became delinquent comprise 29% of the aggregate pool balance.
Freddie began marketing the transaction on April 28 to minority- and women-owned businesses, nonprofit organizations, neighborhood advocacy funds and private investors active in the NPL market, among other potential bidders.
The cover bid price was in the 70% range of UPB. The weighted average broker price option loan-to-value was 93%, average loan size $191,177 and note rate 5.28%.
Advisors on the transaction were Bank of America Merrill Lynch, Wells Fargo Securities and CastleOak Securities.
