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In early February, we wrote about the $410 million of delinquent mortgage loans auctioned off by Freddie Mac. Well now Freddie Mac is at it again, this time selling $1 billion in delinquent loans. Similar to the previously auctioned loans, the delinquent loans are divided into three pools.
The three different pools are worth “$660 million, $249 million and $125 million,” according to DSNews. New York is where the smallest pool has its properties, while the larger pools are dispersed throughout the U.S.
Freddie Mac is selling the delinquent loans because it is under conservatorship by the Federal Housing Finance Agency (FHFA). The conservatorship started in 2008 when the FHFA stepped in to aid Freddie Mac in its time of financial distress. Another reason for the conservatorship was to allow Freddie Mac to “continue to provide liquidity and stability to the mortgage market,” according to the FHFA.
Since last summer, Freddie Mac has had to sell their nonperforming residential loans three times. The latest $1 billion in sales is the largest of all three. We are curious to see how much more the FHFA wants Freddie Mac to clean up.