Freddie Mac has sold about $1.1 billion of seriously delinquent loans serviced by Wells Fargo.
The 5,311 loans have been delinquent for an average of three years. The aggregate pool, which comprises five separate loan pools, is geographically diverse.
Three separate bidders won the auction. Pretium Mortgage Credit Partners in New York acquired three separate pools, totaling $657.8 million in unpaid balance. Rushmore Loan Management Services in Irvine, Calif., won a $184.1 million loan pool. 21st Mortgage won a $214.2 million loan pool.
The auction is scheduled to settle in February and servicing rights will be transferred after settlement.
Wells Fargo Securities, JPMorgan Securities and First Financial Network were financial advisers to Freddie on the auction.
Based on Federal Housing Finance Agency rules, sales of nonperforming loans must be made to servicers that have been preapproved and are in good standing with Freddie, Fannie Mae, Ginnie Mae and the Federal Housing Administration. Additional requirements apply to bidders.
