MCLEAN, VA--(Marketwired - Aug 1, 2014) - Freddie Mac (OTCQB: FMCC) today announced it has sold deeply delinquent loans from its investment portfolio. The transaction consists of $659 million in unpaid principal balance of loans. It is expected to close later this month.
The sale was conducted via a competitive auction at the end of July and executed indirectly through Bank of America affiliates. Twenty-two prospective buyers participated in the auction. Freddie Mac selected the winning bidder on the basis of economics.
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.
The co-advisers for this transaction were Bank of America Merrill Lynch and Credit Suisse Securities.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at www.FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog www.FreddieMac.com/blog.