Loans are marketed towards minority- and women-owned businesses
Freddie Mac has announced that it will auction roughly $628 million worth of non-performing loans (NPLs).
The NPLs – comprised of seasoned non-performing residential first-lien loans held in Freddie Mac's mortgage-related investments portfolio – are being marketed via four pools: two standard pool offerings (SPO) and two extended timeline pool offerings (EXPO).
The EXPO pool offerings target smaller investors, including non-profits and Minority, Women, Disabled, LGBTQ+, Veteran or Service-Disabled Veteran-Owned Businesses (MWDOBs).
"All eligible bidders, including private investors, MWDOBs, non-profits, and neighborhood advocacy organizations are encouraged to bid," the government-sponsored enterprise said in its news release. "To participate, all potential bidders must be approved by Freddie Mac and successfully complete a qualification package to access the secure data room containing information about the NPLs and to bid on the NPL pool(s)."
Qualified investors can bid until September 21 for the SPO pools and until October 19 for the EXPO pools.
Earlier this month, Fannie Mae sold over $243 million in NPLs. The sale was also marketed to encourage participation by MWDOBs and smaller investors.
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