Freddie Mac announced the auction of 3,514 seasoned reperforming loans and moderately delinquent loans serviced by Nationstar Mortgage LLC.
The loans have a total unpaid principal balance of $816.9 million. The aggregate pool is geographically diverse and has a loan-to-value ratio of about 98%, based on broker price opinions.
The sale is the company's third seasoned loan structured transaction and is expected to settle in November. The company began marketing the transaction to potential bidders in August through its advisers.
The first loss subordinate tranche will be initially retained by the loan purchaser. The company expects the buyer of the loans to be an investor with substantial experience in managing both performing and moderately delinquent mortgage loans as well as securitizing mortgage loans.
The collateral is composed of fixed- and step-rate modified seasoned loans. The loans were modified to assist borrowers who were at risk of foreclosure to help them keep their homes.
Credit Suisse Securities (USA) LLC and The Williams Capital Group LP are advisers to Freddie Mac on the transaction.