September 02, 2015Fannie Mae Announces Winner of the First Community Impact Pool of Non-Performing Loans
Pool Structured to Encourage Non-profit and MWOB Participation
WASHINGTON, DC – Fannie Mae (FNMA/OTC) today announced that non-profit New Jersey Community Capital (NJCC) is the winning bidder of the company’s first Community Impact Pool of non-performing loans (NPL), which was specifically structured to attract diverse participation by non-profits, small investors and minority- and women-owned businesses (MWOBs). The transaction is expected to close on October 26, 2015, and included 71 high-occupancy and geographically-focused loans with approximately $10 million in unpaid principal balance (UPB).
“We’re proud to partner with New Jersey Community Capital to help neighborhoods stabilize and recover,” said Joy Cianci, Fannie Mae’s Senior Vice President for Credit Portfolio Management. “This sale will reduce our holdings of non-performing loans while giving homeowners additional options to avoid foreclosure. We will continue to structure loan sales to foster participation of non-profits and small investors and we look forward to working closely with these groups.”
“We are thrilled for the opportunity to continue to expand NJCC’s innovative foreclosure mitigation and prevention programs in Florida to help keep families in their homes and enable distressed communities to flourish,” said Wayne T. Meyer, NJCC. “Through our loss mitigation programs, which utilize principal reduction as a key part of right sizing borrowers' first mortgage debt, we have already helped over 200 homeowners in Florida and look forward to continuing this progress.”
In collaboration with Credit Suisse Securities (USA) LLC, Wells Fargo Securities, LLC and the Williams Capital Group L.P., Fannie Mae began marketing these loans to potential bidders on July 16.
The cover bid price for this pool is 81.43% of UPB (67.13% of the broker’s price opinion (BPO)). The average loan size on the pool was $143,572 and average note rate was 5.43%. The average delinquency of the loans was over three years (approximately 39 months) with an average BPO loan-to-value of 82%.
Along with the Community Impact Pool, Fannie Mae’s second NPL sale included two larger pools with approximately 3,900 loans totaling $765 million in UPB. The winner for these pools, Lone Star (LSF9 Mortgage Holdings, LLC), was announced last month. In order to be as inclusive as possible, bidders on the Community Impact Pool were given additional time to participate.
Information on non-performing loan sale guidelines and registration for ongoing announcements, training and other information can be found at: https://www.fanniemae.com/portal/funding-the-market/npl/index.html.
NJCC is a nonprofit community development financial institution (CDFI) that transforms at-risk communities through strategic investments of capital and knowledge. NJCC invests in affordable housing, community facilities, and economic development ventures that strengthen neighborhoods, improve education, and increase jobs, ultimately providing greater opportunities for low-income populations. To date, NJCC has acquired 761 troubled mortgages with a total of $193 million in unpaid principal balances and has facilitated the approval of more than 300 affordable mortgage modifications through its loss mitigation programs. Since inception, NJCC has facilitated the investment of over $500 million into 800 high-impact projects across its home state of New Jersey, supporting the creation and preservation of 12,900 education seats, 8,200 housing units, 6,100 early care slots, and 6,100 jobs. For more information, please visit www.newjerseycommunitycapital.org.Fannie Mae enables people to buy, refinance, or rent homes.
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