MCLEAN, VA -- (Marketwired) -- 05/12/16 -- Freddie Mac (OTCQB: FMCC) today announced a $135 million non-performing loan (NPL) transaction, an auction of seasoned non-performing residential whole loans. The NPLs are currently serviced by JP Morgan Chase Bank, N.A.
Bids are due from qualified bidders on May 25, 2016. The sales are expected to settle in the third quarter of 2016. The NPLs are offered as one pool.
The winning bidder will be determined on the basis of economics, subject to meeting Freddie Mac's internal reserve levels.
Advisors to Freddie Mac on the transaction are J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and First Financial Network Inc.
In April 2016, Freddie Mac's regulator, the Federal Housing Finance Agency, announced enhancements to its requirements for NPL sales that build on the requirements originally announced in March 2015. Additional information about the company's NPL sales is at http://www.freddiemac.com/npl/.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is the largest source of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.
