Skip to main content

Freddie Mac Auctions Extended Timeline Pool Offering of NPLs. Team Thayer Real Estate News

seal-on-moneyFreddie Mac announced Thursday that it sold 157 deeply delinquent non-performing loans (NPLs) totaling about $31 million in aggregate unpaid principal balance (UPB) in its first-ever Extended Timeline Pool Offering (EXPO) sale on June 3.
EXPOs differ from Freddie Mac's Standard Pool Offerings in that the loans include smaller pool sizes and a longer marketing period. Freddie Mac is targeting smaller investors with its EXPO auctions, which are intended to give these investors extra time to secure funding to participate in the NPL sales.
Freddie Mac began marketing the pool of loans on April 21 and encouraged private investors, minority- and women-owned businesses, non-profits, and neighborhood advocacy funds to bid in the auction, subject to meeting bidder qualification requirements. Those requirements include: the bidding servicer must be approved by and in good standing with GSEs; the servicers must prioritize loan modifications over non-home retention solutions and encourage sales to owner occupants and non-profits; servicers must comply with the Treasury Department's Making Home Affordable Programs, including the Home Affordable Modification Program (HAMP), and must evaluate eligible borrowers for those programs; servicers must evaluate borrowers for proprietary modifications when they are deemed non-HAMP eligible; and servicers must honor all completed modifications.
The winning bidder for the single pool of loans was Corona Asset Management XII, LLC. The cover bid price, the second highest bid, was in the high 80s percent of UPB. The weighted average of broker price opinion, loan-to-value was 80 percent; the average loan size of the 157 loans was $199,079; and the note rate was 5.6 percent.
The loans in the pool were an average of four years delinquent, meaning the loans have either been previously evaluated or are in various stages of loss mitigation or are in foreclosure. Approximately 22 percent of the aggregate pool balance was made up of loans that were previously modified and later became delinquent, according to Freddie Mac.
Wells Fargo Securities and the Williams Capital Group acted as advisors to Freddie Mac for the transaction. The transaction is expected to settle in late July 2015.

Justin Lee Thayer is Lane counties expert in market analysis for real estate investors. Call Justin @ 541-543-7287
Sharing is caring use the social b buttons below to share this post
Labels:
Location: Eugene, OR 97401, USA

Popular posts from this blog

Grass Seed Video

Read more

Bankruptcy Filings Dip Even Lower! Team Thayer #realestate #housing #market #investor #News #oregon

Bankruptcy Filings Dip Lower Nationwide bankruptcy filings were 5 percent lower in October 2016 compared with a year earlier, falling even lower than last month’s reported decrease, according to October 2016 AACER bankruptcy data reported by Epiq Systems. Bankruptcy filings totaled 63,042 in October, which was an increase from September’s total of 64,614, and was approximately 2.4 percent higher than October 2015’s total of 63,042 (an increase of 1,572).  Year-to-date, there have been 656,125 bankruptcy filings nationwide for the past nine months of 2016 (about 65,613 per month), down from 2015’s year-to-date total through the end of October of 700,014 (about 70,001 per month). The average number of filings per day in October 2016 was 3,152 over 20 days, which is an increase from September’s daily average of 3,077 over 21 days. The extra filing day in September compared to October accounts for the slight increase in the number of filings in September; had October feature...
Read more

When Will Bank Foreclosurews ‘Normalize’? Team Thayer #realestate #investor #housing #market #news #oregon

With much of the talk surrounding the housing market centered on “normalization” or returning to its pre-crisis state, one metric which the market is watching is the distressed sales share—the share of REO and short sales that comprise total residential home sales. For February 2016, the distressed sales share declined by 2.9 percentage points over-the-year (and 0.4 percentage points over-the month) down to 11 percent, according to  data released by CoreLogic  on Thursday. At their peak in January 2009, distressed sales accounted for nearly one-third of all residential home sales (32.4 percent) but has been declining steadily since then. By comparison, the pre-crisis share of distressed sales was typically around 2 percent; CoreLogic estimates that if the current rate of year-over-year decline continues, the distressed sales share will reach the “normal” pre-crisis level in slightly more than two years. “Prior to the housing crash, the distressed share of total...
Read more