Fannie Mae [1] announced the winning bidders of its most recent Community Impact Pools of nonperforming loans on Thursday. Matawin Ventures XX, LLC, won Fannie’s seventh pool, while Community Development Fund IV, LLC, won the eighth pool.
With an expected closing date of August 15, 2017, the transaction will include $31.9 million in unpaid principal balance and 123 loans spread across New York and New Jersey.
Broken down, Matawin’s pool includes 67 loans with a total unpaid principal balance of just over $19 million. The average loan size is $289,138, and the weighted average delinquency rate is 53 months. Weighted average note rates and loan-to-value ratios are 4.35 percent and 65.17 percent, respectively.
On CDF’s pool, there are 56 loans with a total unpaid principal balance of $12.5 million. The average loan size is $225,384, with an average delinquency rate of 30 months. The weighted average note rate and loan-to-value ratio are 4.48 percent and 97.31 percent, respectively.
Bidding began on the pools in May of this year. Wells Fargo Securities, LLC, and The Williams Capital Group, L.P., collaborated on marketing the loans.
The second-highest bids on these latest pools—considered the “cover bids”—are 75 percent of the unpaid principal balance on the first pool and 69 percent of the second.
Joy Cianci, Fannie Mae’s SVP for Single-Family, Special, and Distressed Assets, has said previously that the sale of these nonperforming loans is an effort to aid underwater borrowers.
“We are offering these non-performing loans and this community impact pool to diverse investors in an attempt to expand the opportunities available to borrowers who are significantly delinquent on their mortgage to avoid foreclosure,” Cianci said regarding previous sales.
According to Fannie Mae, Community Impact Pools generally have a smaller balance than other pools of nonperforming loans, and they are more geographically-focused. They are also often marketed toward nonprofit organizations, minority- and women-owned businesses, and smaller investors.
Buyers of these pools are required to offer loss mitigation options to borrowers before moving into foreclosure. To learn more about Fannie Mae’s Community Impact Pools, visit FannieMae.com [2].