Fannie Mae Announces Winner of Fourth Community Impact Pool of Non-Performing Loans

Alicia Jones

202-752-5716

WASHINGTON, DC – Fannie Mae (FNMA/OTC) today announced that Corona Asset Management XVIII, LLC, is the winning bidder on the company’s fourth Community Impact Pool of non-performing loans. The transaction is expected to close on September 21, 2016, and includes 80 loans secured by properties located in the Miami, Florida area with an unpaid principal balance of approximately $18.5 million.

In collaboration with Bank of America Merrill Lynch and CastleOak Securities, L.P., Fannie Mae began marketing this Community Impact Pool to potential bidders on June 16, 2016.

The loan pool awarded in this most recent transaction includes:

• 80 loans with an aggregate unpaid principal balance of $18,467,573; average loan size of $230,845; weighted average note rate of 4.86%; weighted average delinquency of 38 months; weighted average broker's price opinion loan-to-value ratio of 98%.

The cover bid price for this CIP is 62.4% of UPB (60.9% BPO).

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 give 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.