When I was 17 and owned my business Reno Lawn and Landscape, I had just finished thatching a lawn. I was filthy from head to toe because the lawn was dry and full of dust. It was one of the first times I had used my new thatcher and the job had taken a few hours longer than I anticipated. I had grossly under charged for the job but a bid is a bid so I was relegated to making a measly amount per hour for my efforts and equipment.
I was beat tired, irritated about working for such little pay, and very thirsty so I had stopped at my usual place 7-Eleven to get a Big Gulp after the job. I didn’t know at the time how bad sodas were for me. Bloomberg hadn’t arrived on the scene back then to save me with some government policy. Sorry I digress.
As I get my exhausted butt and filthy dusty body out of my truck to go inside for my most delicious Big Gulp, a man says to me, “Brother can you spare a dime?”
Without thinking, I just blurted something out about why don’t you get a job, I have been working for hours on a poorly bid job, look at how dirty I am, don’t you know what a thatcher costs, why would I give you money while you just stand there and beg. I am sure he had no idea why I was spewing incongruent statements at him all at once.
Heck it was only a dime, right? Yeah, but wrong time to ask!
I don’t remember exactly what happened next but I am sure he was a quite surprised because of my reaction. I know I was but it just came out of me like a fountain.
Why do I tell you that story? Well I was going to ask you, “Brother can you spare a few hundred million?” Fannie and Freddie are auctioning off $1.6 billion of delinquent loans in February and I would like to buy some.
This will be their largest pool of residential non-performing loans (NPL) yet. It will have $1.6 billion in unpaid principal balance (UPB). They will have five Standard Pool Offerings and two Extended Timeline Pool Offerings. Standards are geographically diversified whereas Extended are geographically concentrated.
This will all be Freddie Mac as Fannie Mae already had a sale in January. In December was the last one for Freddie with 5,300 deeply delinquent loans serviced by Wells Fargo with an unpaid principal balance of $1.1 billion.
Bids are due February 23rd so I guess I had better get myself over to 7-Eleven and see if someone can spare a dime.