Goldman Sachs unit snaps up $116.4m of non-performing loans in Freddie Mac auction

by Francis Monfort21 Mar 2018

Freddie Mac has sold 2,150 deeply delinquent non-performing loans (NPLs) from its mortgage investments portfolio totaling $341 million.

Goldman Sachs unit MTGLQ Investors had the winning bids for two pools of NPLs totaling $116.4 million. BlueWater Investment Holdings won the auction for a separate pool with an unpaid principal balance of $224.7 million.

MTGLQ won the bid for a pool of 138 loans worth $29.5 million. The loans have been delinquent for an average of 43 months and have an average loan balance of $214,800. All loans are located in Chicago Cook County, Ill. The Goldman unit also won the bid for another pool of 527 loans worth $86.9 million. The average delinquency is 25 months and the loans, which have a national geographic distribution, have balances of $165,700 on average.

The pool won by BlueWater Investment has 1,485 loans that are distributed nationally. Delinquent for an average of 26 months, the loans have an average balance of $149,500.

The loans are currently serviced by Shellpoint Mortgage Servicing. Freddie Mac said it expects the transaction to settle in May.

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. Freddie Mac said mortgages that were previously modified and subsequently became delinquent comprise approximately 55% of the aggregate pool balance.

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