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28 Innovation goes beyond the world of art. At MWZ&M, we're redefi ning the existing notions of what a law fi rm should be. Through superior customer service, an enterprise-class IT network and innovative default resolution concepts, we bring about maximum loan resolution while minimizing loss severity. In short, we specialize in default legal services that can increase client profi tability. With our comprehensive services and high level of commitment, MWZ&M is a must have on your list of legal service providers. 14160 N. Dallas Pkwy, Suite 900, Dallas, TX 75254 124 West Capitol, Suite 1560, Little Rock, AR 72201 5217 Maryland Way, Suite 404, Brentwood, TN 37027 Tel: 214.635.2650 Fax: 214.635.2686 MWZMLaw.com MACKIE WOLF ZIENTZ & MANN, P.C. FREDDIE MAC SELLS OFF 'DEEPLY DELINQUENT' LOANS Freddie Mac agreed to sell more than a $500 million in what it calls "deeply delin- quent" loans from its investment portfolio to an as-yet unnamed buyer. According to Freddie, the deal would relieve the GSE from $659 million in unpaid loans when completed by the end of last month. e sale was conducted via a competitive auction at the end of July that featured 22 prospective buyers and was, according to Freddie, executed indirectly through Bank of America affiliates Bank of America Merrill Lynch and Credit Suisse Securities. is was the first such sale by the GSE, which, like its larger cousin, Fannie Mae, is looking for ways to lighten its burden, under government mandate. ese GSEs guarantee about $4.5 trillion in mortgages that are mostly com- prised of securities and are required by federal regulators‒‒under whose control Fannie and Freddie have been since 2008‒‒to reduce their non-performing holdings through conserva- torship. Originally, both Fannie and Freddie sought to recoup their debts through loan modification and by selling foreclosed homes. e news also comes at a time when bond investors are demanding higher yields to pro- tect themselves against losses on mortgages guaranteed by Freddie. Fannie had tried sell- ing risk-sharing notes, which are not backed by the government, but they've performed poorly, leaving investors with a definite lack of confidence in the GSEs. Freddie Mac owns or backs nearly $2 tril- lion worth of mortgage and securities debt. According to its monthly disclosure state- ment, Freddie held $169.1 billion in loans as of June 30 and has started to repackage certain mortgages into new guaranteed bonds. e company's portfolio was around $420 billion by the end of June, and Freddie had about $40 billion in non-accruing loans at the end of the first quarter. Worth keeping an eye on is the recent surge in interest among certain investment firms‒‒Lone Star Funds and Ellington Management Group are two outspoken examples‒‒in acquiring poorly perform- ing home loans. However, the full terms of the transaction, conducted on August 1, was released later in the month.