Freddie Mac announced today it sold via auction 6,816 deeply delinquent non-performing loans (NPLs) serviced by Nationstar Mortgage, LLC from its mortgage investment portfolio. The sale consisted of two transactions: an Extended Timeline Pool Offering (EXPO) on March 10 and a Standard Pool Offering (SPO) on February 25. The transactions are expected to settle in April and May 2016, and servicing will be transferred post-settlement.

Community Loan Fund of New Jersey, Inc., a nonprofit, was the winning bidder on the two EXPO pools and two for-profit entities were the winning bidders on the SPO pools. The loans were offered as seven separate pools of mortgage loans. Two of the pools were EXPO pools consisting of Florida mortgage loans. Five of the pools were geographically diverse SPO pool offerings. Investors had the flexibility to bid on one or multiple pools, or bid on the aggregate of the SPO pools.

The loans have been delinquent for about four years, on average. Given the deep delinquency status of the loans, the borrowers have likely been evaluated previously for or are already in various stages of loss mitigation, including modification or other alternatives to foreclosure, or are in foreclosure. Mortgages that were previously modified and subsequently became delinquent comprise approximately 34 percent of the aggregate pool balance. The aggregate pool is geographically diverse and has a loan-to-value ratio of approximately 97 percent, based on brokers price opinion.

Additional information about the company’s NPL sales is available on its website.