Fannie Mae Announces Winners of its Latest Non-Performing Loan Sale
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Alicia Jones
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202-752-5716
WASHINGTON, DC – Fannie Mae (FNMA/OTC) today announced the winning bidders for its seventh non-performing loan sale. The sale included approximately 6,800 loans totaling $1.06 billion in unpaid principal balance (UPB), divided among four pools. The winning bidders for the transaction, expected to close on October 25, 2016, are MTGLQ Investors, L.P. (Goldman Sachs) for the first pool, PRMF Acquisition LLC (Neuberger Berman) for the second pool, LSF9 Mortgage Holdings LLC (Lone Star) for the third pool, and MFA Financial, Inc. (MFA) for the fourth pool.
In collaboration with Wells Fargo Securities, LLC and The Williams Capital Group, L.P., Fannie Mae began marketing these loans to potential bidders on August 10, 2016. Separately, bids are due on Fannie Mae’s fifth Community Impact Pool on September 15, 2016, which is also part of the offering.
The loan pools awarded in this most recent transaction include:
- Group 1 Pool: 2,887 loans with an aggregate unpaid principal balance of $468,901,523; average loan size $162,418; weighted average note rate 5.49%; weighted average delinquency 44 months; weighted average broker's price opinion loan-to-value ratio of 108%.
- Group 2 Pool: 1,551 loans with an aggregate unpaid principal balance of $234,057,619; average loan size $150,908; weighted average note rate 5.55%; weighted average delinquency 45 months; weighted average broker's price opinion loan-to-value ratio of 97%.
- Group 3 Pool: 1,638 loans with an aggregate unpaid principal balance of $237,997,902; average loan size $145,298; weighted average note rate 5.49%; weighted average delinquency 33 months; weighted average broker's price opinion loan-to-value ratio of 110%.
- Group 4 Pool: 751 loans with an aggregate unpaid principal balance of $123,913,046; average loan size $164,997; weighted average note rate 5.12%; weighted average delinquency 39 months; weighted average broker's price opinion loan-to-value ratio of 124%.
The cover bid, which is the second highest bid, for Pool 1 is 63.5% of UPB (56.9% of Broker Price Opinion - BPO), for Pool 2 is 72.4% UPB (57.3% BPO), for Pool 3 is 65.2% UPB (58.1% BPO) and for Pool 4 is 67.1% UPB (73.1% 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 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.