On Tuesday, Fannie Mae [1] announced the winning bidders of its ninth non-performing loan sale [2]. The sale of these loans is intended to reduce the number of seriously-delinquent loans owned by Fannie Mae and to help stabilize neighborhoods and to help meet the portfolio reduction targets required under the Senior Preferred Stock Purchase Agreement [3] with the United States Treasury. Fannie Mae markets these loans in collaboration with Bank of America Merrill Lynch and The Williams Capital Group, L.P. The transaction is expected to close on April 25.
The sale included approximately 9.400 loans totaling $1.68 billion in unpaid principal balance (UPB). The sale was divided into 4 pools as follows:
- 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 winning bidders were Igloo Series II Trust (Balbec Capital LP) for pool 1 and MTGLQ Investors, L.P. Goldman Sachs (Goldman Sachs) for pools 2 through 4. The cover bid, the second highest bid, for Pool 1 is 73.2 percent of UPB, 88.5 percent for Pool 2, 73.2 percent for Pool 3, and 51.3 percent UPB for Pool 4. Bids for Fannie Mae’s sixth Community Impact Pool are due on March 21.