Freddie Mac is set to offload $659 million in seriously delinquent loans to a single, undisclosed buyer. The transaction marks Freddie’s first sale of seriously delinquent loans.
According to Freddie, the sale was conducted via a competitive auction that took place at the end of July and was executed indirectly through Bank of Americaaffiliates.
Freddie selected the winning bidder “on the basis of economics” from a pool of 22 prospective buyers that took part in the auction.
When contacted, Freddie declined to identify the winner of the auction.
“The transaction was well received by the market and Freddie Mac will continue to look for opportunities to reduce exposure to less liquid assets in its investment portfolio,” Freddie said in a statement.
Bank of America Merrill Lynch and Credit Suisse Securities acted as co-advisors for the transaction.