Fannie Mae Announces Winner of its Latest Non-Performing Loan Sale
WASHINGTON, DC – Fannie Mae (FNMA/OTC) today announced the winning bidder for its fourteenth non-performing loan sale. The sale includes approximately 10,300 loans totaling $1.88 billion in unpaid principal balance (UPB), divided among five pools. The winning bidder for the transaction is MTGLQ Investors, L.P. (Goldman Sachs). The transaction is expected to close on November 21, 2018.
In collaboration with Bank of America Merrill Lynch and First Financial Network, Inc., Fannie Mae began marketing these loans to potential bidders on September 13, 2018.
The loan pools awarded in this most recent transaction include:
- Group 1 Pool: 2,020 loans with an aggregate unpaid principal balance of $338,754,417; average loan size $167,700; weighted average note rate 4.56%; weighted average delinquency 21 months; and weighted average broker's price opinion (BPO) loan-to-value ratio of 83%.
- Group 2 Pool: 4,623 loans with an aggregate unpaid principal balance of $749,945,556; average loan size $162,221; weighted average note rate 5.09%; weighted average delinquency 35 months; and weighted average BPO loan-to-value ratio of 62%.
- Group 3 Pool: 2,243 loans with an aggregate unpaid principal balance of $505,483,611; average loan size $225,361; weighted average note rate 4.36%; weighted average delinquency 30 months; and weighted average BPO loan-to-value ratio of 120%.
- Group 4 Pool: 1,201 loans with an aggregate unpaid principal balance of $235,254,033; average loan size $195,882; weighted average note rate 4.59%; weighted average delinquency 37 months; and weighted average BPO loan-to-value ratio of 108%.
- Group 5 Pool: 219 loans with an aggregate unpaid principal balance of $49,235,938; average loan size $224,822; weighted average note rate 5.39%; weighted average delinquency 72 months; and weighted average BPO loan-to-value ratio of 77%.
The cover bids, which are the second highest bids per pool, were 88.2% of UPB (58.1% of BPO) for pool1, 98.4% of UPB (52.6% of BPO) for pool 2, 60.5% of UPB (68.4% of BPO) for pool 3, 82.0% of UPB (77.9% of BPO) for pool 4 and 78.0% of UPB (45.8% of BPO) for pool 5.
Bids are due on Fannie Mae's fourteenth Community Impact Pools on October 23, 2018.
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.Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/FannieMae.