One of the mortgage industry's largest players, Freddie Mac, has opened up an auction on $420 million worth of nonperforming loans. According to a recent report, these loans are pretty substantial.
"The NPLs are currently serviced by Shellpoint Mortgage Servicing and are marketed through four pools; three standard pool offerings, which are likely to be large and geographically diverse, and one extended timeline pool offering to target smaller investors, including nonprofits or women-owned businesses," according to National Mortgage News.
"NPL sales are an important tool for Freddie to manage credit losses on its delinquent loan portfolio. The company's single-family delinquency rate increased from 95 basis points in November to 108 in December, with the multifamily delinquency rate remaining flat at 2 basis points."
Bids are reportedly due on March 13 for the SPO pools and March 27 for EXPO pools.
To learn more about Freddie Mac's enormous nonperforming sales auction, click on the image above.