Page 48 - The GSE Report March-April 2018

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on February 15, 2018, to potential bidders, including minority and women-owned businesses (MWOBs), non-profits, neighborhood advocacy funds and private investors active in the NPL market.
For the SPO® offerings, the loans were offered as three separate pools of mortgage loans. Two of the three pools consist of mortgage loans secured by geographically diverse properties. The remaining pool consists solely of mortgage loans secured by properties in Chicago Cook County. Investors had the flexibility to bid on each pool individually and/or any combination of pools.
The loans have been delinquent for over two years, on average. 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. Mortgages that were previously modified and subsequently became delinquent comprise approximately 55 percent of the aggregate pool balance. The aggregate pool has a loan- to-value ratio of approximately 80 percent, based on Broker Price Opinion (BPO).
The winners of the pools were BlueWater Investment Holdings, LLC (Pool 1, comprised of 1,485 loans with $224.7 billions UPB); MTGLQ Investors L.P. (Pool 2, comprised of 138 loans with $29.5 billion UPB); and MTGLQ Investors L.P. (Pool 3, comprised of 527 loans with $86.9 billion UPB) (Press Release, Freddie Mac, 03/19/18)
On March 9, Freddie Mac priced its first Seasoned Credit Risk Transfer Trust (SCRT) offering
of 2018—a rated securitization of approximately $1.8 billion of both guaranteed senior and unguaranteed subordinate securities. Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2018-1 is expected to issue approximately $1.6 billion in guaranteed senior certificates and approximately $183 million in unguaranteed mezzanine and subordinate certificates. The collateral backing the certificates are 10,983 fixed- and step-rate modified seasoned re-performing loans (“RPLs”). These loans were modified to assist borrowers who were at risk of foreclosure to help them keep their homes and will have been performing for at least 12 months as of the issuance of the certificates. (Press Release, Freddie Mac, 03/09/18)
Freddie Mac makes underwriting mortgages for the self-employed more efficient
On March 20, Freddie Mac announced the next stage of its initiative with LoanBeam: simplifying and automating the process for calculating income for a self-employed borrower when underwriting a mortgage through Freddie Mac’s automated underwriting system, ultimately reducing the amount of time it will take to process the request.
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