Fannie Mae Announces Winners of its Latest Non-Performing Loan Sale

$581.1 million sale supports efforts to reduce the number of seriously delinquent loans in Fannie Mae's portfolio

Alicia Jones

202-752-5716

WASHINGTON, DC – Fannie Mae (FNMA/OTC) today announced the winning bidders for its tenth non-performing loan sale. The sale included approximately 3,400 loans totaling $581.1 million in unpaid principal balance (UPB), divided among three pools. The winning bidders for the transaction were MTGLQ Investors, L.P. (Goldman Sachs) for pool 1, Igloo Series III Trust (Balbec Capital LP) for pool 2, and Rushmore Loan Management Services LLC for pool 3. The transaction is expected to close on July 26, 2017.

In collaboration with Wells Fargo Securities, LLC and The Williams Capital Group, L.P., Fannie Mae began marketing these loans to potential bidders on May 10, 2017.

The loan pools awarded in this most recent transaction include:

• Group 1 Pool: 808 loans with an aggregate unpaid principal balance of $127,716,108; average loan size $158,064; weighted average note rate 5.03%; weighted average delinquency 38 months; weighted average broker's price opinion loan-to-value ratio of 86.84%.
• Group 2 Pool: 681 loans with an aggregate unpaid principal balance of $115,802,447; average loan size $170,048; weighted average note rate 4.80%; weighted average delinquency 28 months; weighted average broker's price opinion loan-to-value ratio of 81.03%
• Group 3 Pool: 1,929 loans with an aggregate unpaid principal balance of $337,667,876; average loan size $175,048; weighted average note rate 4.87%; weighted average delinquency 30 months; weighted average broker's price opinion loan-to-value ratio of 88.02%.

The cover bid, which is the second highest bid, for Pool 1 is 80.24% of UPB (54.43% of Broker Price Opinion - BPO), for Pool 2 is 85.01% UPB (56.16% BPO), and for Pool 3 is 77.63% UPB (56.50% BPO).

Bids are due on Fannie Mae's seventh and eighth Community Impact Pools on June 14, 2017. 

On April 14, 2016, the Federal Housing Finance Agency announced additional enhancements to its requirements for sales of non-performing loans by Fannie Mae and Freddie Mac that build on the requirements originally announced in March 2015. The additional requirements, which apply to this Fannie Mae non-performing loan sale, encourage sustainable modifications that have the potential to provide more borrowers the opportunity for home retention by requiring evaluation of underwater borrowers for modifications that may include principal and/or arrearage forgiveness; forbidding "walking away" from vacant homes; and establishing more specific proprietary loan modification standards.

Potential buyers can register for ongoing announcements or training, and find more information on Fannie Mae's sales of non-performing loans and on the Federal Housing Finance Agency's guidelines for these sales, at https://www.fanniemae.com/portal/funding-the-market/npl/index.html.