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

Matthew Classick

202-752-3662

WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) today announced the winning bidder for its fifteenth non-performing loan sale. The sale includes approximately 4,300 loans totaling $770.13 million in unpaid principal balance (UPB), divided among four pools. The winning bidders of the four pools for the transaction were Igloo Series IV Trust (Balbec Capital, LP) for Pool 1, MFRA Trust 2015-1 (MFA) for Pool 2, Elkhorn Depositor LLC (Roosevelt Mortgage Company, LLC) for Pool 3, and VRMTG ACQ, LLC (VWH Capital Management, LP) for Pool 4. The transaction is expected to close on July 23, 2019.

In collaboration with Bank of America Merrill Lynch and First Financial Network, Inc., Fannie Mae began marketing these pools to potential bidders on May 14, 2019.

The loan pools awarded in this most recent transaction include:

• Group 1 Pool: 896 loans with an aggregate unpaid principal balance of $153,757,122; average loan size $171,604; weighted average note rate 4.33%; weighted average delinquency 19 months; and weighted average broker's price opinion (BPO) loan-to-value ratio of 82%.

• Group 2 Pool: 708 loans with an aggregate unpaid principal balance of $135,087,445; average loan size $190,801; weighted average note rate 4.18%; weighted average delinquency 28 months; and weighted average BPO loan-to-value ratio of 108%.

• Group 3 Pool: 1,597 loans with an aggregate unpaid principal balance of $276,643,652; average loan size $173,227; weighted average note rate 4.50%; weighted average delinquency 22 months; and weighted average BPO loan-to-value ratio of 90%.

• Group 4 Pool: 1,136 loans with an aggregate unpaid principal balance of $204,642,100; average loan size $180,143; weighted average note rate 4.60%; weighted average delinquency 22 months; and weighted average BPO loan-to-value ratio of 77%.

The cover bids, which are the second highest bids per pool, were 83.3% of UPB (55.3% of BPO) for pool 1, 78.8% of UPB (76.1% of BPO) for pool 2, 77.5% of UPB (55.5% of BPO) for pool 3 and 87.0% of UPB (51.8% of BPO) for pool 4.

Bids are due on Fannie Mae's fifteenth Community Impact Pools on June 18, 2019.

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.

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.