Federal Home Loan Mortgage Corp (OTCBB:FMCC) released another statement informing that it is all set to auction non-performing loans worth $233 million, which are currently serviced by Ocwen Financial Corp (NYSE:OCN).
Ocwen’s December plans
The announcement came after Ocwen expressed its intention of exiting servicing completely last December. The company had said that it is working towards extinguishing its agency servicing rights by selling it off to the interested parties.
In this direction, Ocwen has already sold a $25 billion worth of MSR portfolio to Nationstar Mortgage (NSM), which is over and above $9.8 billion portfolio sold to it recently. Following which, Federal Home Loan Mortgage Corp (OTCBB:FMCC) has decided to part away with $233 million of loans now, which it calls as ‘deeply delinquent’ loans. The move also reflects the housing company’s newly adopted strategy as a part of its new program to eliminate deep risky loans from its mortgage portfolio.
Encouraged various investors to participate
The new program launched by Federal Home Loan Mortgage Corp (OTCBB:FMCC), ‘Extended Timeline Pool Offering’ or ‘EXPO’ is a plan intended to target small investors. It was last week when the housing entity had placed its first EXPO offering on the table, where the unpaid principal balance amounted to $35 million. The company said that the offering consisted of highly risky non-performing loans situated in Florida.
In the latest offering, which is serviced by Ocwen, Federal Home Loan Mortgage Corp (OTCBB:FMCC) has encouraged all class of investors, ranging from private investors to women-owned businesses and non-profits to participate in the auction. The winning bid shall be selected on the basis of economics, said the company in its note.
The stock of Federal Home Loan Mortgage Corp (OTCBB:FMCC) was up by nearly 2% to $2.56 during Tuesday’s trade session, while as many as 2.41 million shares traded hands.