October 10, 2019Fannie Mae Announces Winner of its Latest Non-Performing Loan Sale
WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) today announced the winning bidder for its sixteenth non-performing loan sale. The sale includes approximately 5,200 loans totaling $948.7 million in unpaid principal balance (UPB), divided among four pools. The winning bidders of the four pools for the transaction were Igloo Series IV Trust (Balbec Capital, LP) for Pool 1, MTGLQ Investors, L.P. (Goldman Sachs) for Pool 2, LSRMF Mortgage Holdings II, LLC (Lone Star) for Pool 3, and MTGLQ Investors, L.P. (Goldman Sachs) for Pool 4. The transaction is expected to close on November 20, 2019.
In collaboration with Bank of America Merrill Lynch and First Financial Network, Inc., Fannie Mae began marketing these pools to potential bidders on September 12, 2019.
The loan pools awarded in this most recent transaction include:
- Group 1 Pool: 1,072 loans with an aggregate unpaid principal balance of $193,822,192; average loan size $180,804; weighted average note rate 4.32%; weighted average delinquency 24 months; and weighted average broker's price opinion (BPO) loan-to-value ratio of 82%.
- Group 2 Pool: 543 loans with an aggregate unpaid principal balance of $101,698,003; average loan size $187,289; weighted average note rate 4.47%; weighted average delinquency 34 months; and weighted average BPO loan-to-value ratio of 103%.
- Group 3 Pool: 2,467 loans with an aggregate unpaid principal balance of $408,962,974; average loan size $165,773; weighted average note rate 4.95%; weighted average delinquency 35 months; and weighted average BPO loan-to-value ratio of 62%.
- Group 4 Pool: 1,091 loans with an aggregate unpaid principal balance of $244,200,487; average loan size $223,832; weighted average note rate 4.25%; weighted average delinquency 31 months; and weighted average BPO loan-to-value ratio of 121%.
The cover bids, which are the second highest bids per pool, were 88.0% of UPB (60.5% of BPO) for Pool 1, 82.1% of UPB (75.7% of BPO) for Pool 2, 98.1% of UPB (53.2% of BPO) for Pool 3 and 58.6% of UPB (66.7% of BPO) for Pool 4.
Bids are due on Fannie Mae's sixteenth Community Impact Pools on October 22, 2019.
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, on the Whole Loans Sales page.
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.