Fannie Mae Announces Winners of its Latest Non-Performing Loan Sale
Sale of $1.6B supports efforts to reduce the number of seriously delinquent loans in Fannie Mae's portfolio
WASHINGTON, DC – Fannie Mae (FNMA/OTC) today announced the winning bidders for its ninth non-performing loan sale. The sale included approximately 9,400 loans totaling $1.68 billion in unpaid principal balance (UPB), divided among four pools. The winning bidders for the transaction, expected to close on April 25, 2017, were Igloo Series II Trust (Balbec Capital LP) for pool 1 and MTGLQ Investors, L.P. (Goldman Sachs) for pools 2 through 4.
In collaboration with Bank of America Merrill Lynch and The Williams Capital Group, L.P., Fannie Mae began marketing these loans to potential bidders on February 14, 2017.
The loan pools awarded in this most recent transaction include:
- Group 1 Pool: 1,465 loans with an aggregate unpaid principal balance of $246,748,844; average loan size $168,429; weighted average note rate 4.51%; weighted average delinquency 29 months; weighted average broker's price opinion loan-to-value ratio of 78.75%.
- Group 2 Pool: 3,062 loans with an aggregate unpaid principal balance of $496,205,215; average loan size $162,053; weighted average note rate 5.05%; weighted average delinquency 38 months; weighted average broker's price opinion loan-to-value ratio of 64.81%.
- Group 3 Pool: 2,457 loans with an aggregate unpaid principal balance of $429,254,601; average loan size $174,707; weighted average note rate 4.90%; weighted average delinquency 39 months; weighted average broker's price opinion loan-to-value ratio of 79.61%.
- Group 4 Pool: 2,427 loans with an aggregate unpaid principal balance of $512,628,430; average loan size $211,219; weighted average note rate 4.68%; weighted average delinquency 42 months; weighted average broker's price opinion loan-to-value ratio of 129.55%.
The cover bid, which is the second highest bid, for Pool 1 is 73.2% of UPB (57.7% of Broker Price Opinion - BPO), for Pool 2 is 88.5% UPB (57.4% BPO), for Pool 3 is 73.2% UPB (58.3% BPO) and for Pool 4 is 51.3% UPB (66.5% BPO).
Bids are due on Fannie Mae’s sixth Community Impact Pool on March 21, 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.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.