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

Keosha Burns

202-752-7840

WASHINGTON, DC – Fannie Mae (FNMA/OTC) today announced the winning bidders for its third non-performing loan sale (NPL) of approximately 7,000 loans totaling $1.24 billion in unpaid principal balance (UPB), divided amongst three pools. The winning bidders for the transaction, expected to close December 17, 2015, are Fortress (New Residential Investment Corp.) for the first and third pools and Goldman Sachs (MTGLQ Investors, L.P.) for the second pool.

In collaboration with Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC and the Williams Capital Group L.P., Fannie Mae began marketing these loans to potential bidders on October 9, 2015:

• Pool #1: 1,963 loans with an aggregate UPB of $418,837,669; average loan size $213,366; weighted average note rate 5.21%; average delinquency 52 months; weighted average Broker Price Option (BPO) LTV of 108%
• Pool #2: 3,823 loans with an aggregate UPB of $588,367,863; average loan size $153,902; weighted average note rate 5.32%; average delinquency 34 months; weighted average BPO LTV of 70%
• Pool #3: 1,224 loans with an aggregate UPB of $235,320,739; average loan size $192,256; weighted average note rate 4.90%; average delinquency 36 months; weighted average BPO LTV of 135%

The cover bid price for Pool #1 is 72.36% of UPB (64.74% BPO), for Pool #2 is 87.76% of UPB (52.81% BPO) and for Pool # 3 is 54.75% UPB (68.80% BPO). The average loan size and weighted average note rate on the aggregate of the three pools were $177,251 and 5.20%, respectively. The average delinquency of the loans was approximately 41 months with a weighted average BPO LTV of 95%.

“The non-performing loans included in this sale are severely delinquent and despite our ongoing efforts to offer loss mitigation on these loans, they remain non-performing,” said Joy Cianci, Fannie Mae’s Senior Vice President for Credit Portfolio Management. “We are offering non-performing loan sales to investors and their servicers who can help borrowers avoid foreclosure wherever possible by applying a wider range of loss mitigation options than we have available.”

For more information on the FHFA Non-performing Loan Sale guidelines or if you are an interested buyer, you can register for ongoing announcements, training and other information at: https://www.fanniemae.com/portal/funding-the-market/npl/index.html.