Freddie Mac Announces First Extended Timeline NPL Pool Offering (EXPO)

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The FINANCIAL — Freddie Mac on April 21 announced its first Extended Timeline Pool Offering (EXPO), an auction of deeply delinquent non-performing loans (NPLs) from its mortgage investment portfolio.

The loans have an aggregate unpaid principal balance of $35 million. Bids are due from qualified buyers on June 2, 2015 and the transaction is expected to settle in July 2015. The loans offered for sale are all located in Miami-Dade County, Florida, according to Freddie Mac.

Key attributes of Freddie Mac’s EXPOs in comparison to the company’s Standard Pool Offerings include smaller pool sizes and a longer marketing period. This is intended to provide smaller investors extra time to secure funds to participate in Freddie Mac NPL auctions. All eligible bidders, including private investors, minority and women owned businesses (MWOBs), non-profits and neighborhood advocacy funds are encouraged to bid.

The winning bidder will be determined on the basis of economics, subject to meeting Freddie Mac’s internal reserve levels. To participate, all potential bidders are required to be approved by Freddie Mac to access the secure data room containing information about the NPLs and to bid on the NPL pool.

Advisors to Freddie Mac on the transaction are Wells Fargo Securities, LLC and The Williams Capital Group, L.P., an MWOB.


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