Home / Daily Dose / Fannie Mae Announces Winner for Non-Performing Loan Sale
Print This Post Print This Post

Fannie Mae Announces Winner for Non-Performing Loan Sale

Fannie maeFannie Mae has revealed the winning bidder for its thirteenth Community Impact Pool of non-performing loans, with the transaction expected to close on August 20, 2018.

This latest pool of Fannie’s non-performing loans includes approximately 667 loans, with a total unpaid principal balance (UPB) of $129.23 million. The loans are geographically focused in New Jersey, New York, Baltimore, Maryland, Cook County, Illinois, and Miami, Florida, according to Fannie. So, who was the lucky winner? The pool will go to VRMTG ACQ, LLC (VWH Capital Management, LP), a minority woman-owned business.

Fannie Mae began marketing this batch of non-performing loans to bidders this past May, working in conjunction with Bank of America Merrill Lynch and The Williams Capital Group, L.P. According to the GSE, the loan pools awarded in this most recent transaction include:

CIP Pool 1: 667 loans with an aggregate unpaid principal balance of $129,233,129; average loan size of $193,753; weighted average note rate of 4.35 percent; weighted average delinquency of 30 months; and weighted average broker's price opinion loan-to-value ratio of 99 percent weighted by UPB.

Fannie reports that the second-highest bid for the Community Impact Pool came to “71.16 percent of UPB (54.48 percent of broker's price opinion).”

Fannie announced the winners of its twelfth non-performing loan sale back in March, consisting of approximately 5,700 loans, divided into three pools, with a total UPB of more than a billion dollars.

Earlier this month, Fannie Mae also priced its second Seasoned Credit Risk Transfer Trust offering of 2018, with the total coming in at around $1.6 billion. As detailed by the GSE, that securitization included both guaranteed senior and unguaranteed subordinate securities. Freddie’s statement explained that “the SCRT securitization program is a key part of Freddie Mac's seasoned loan offerings to reduce less liquid assets in its mortgage-related investments portfolio and shed credit and market risk via economically reasonable transactions.”

About Author: David Wharton

David Wharton, Managing Editor at the Five Star Institute, is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in Journalism. Wharton has over 15 years of experience in journalism and previously worked at Thomson Reuters, a multinational mass media and information firm, as Associate Content Editor, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton has an extensive and diversified portfolio of freelance material, with published contributions in both online and print media publications. Wharton and his family currently reside in Arlington, Texas. He can be reached at David.Wharton@theMReport.com.
x

Check Also

Negative Equity Hits Record Levels

The amount of homes in negative equity fell to the lowest level in nine years, according to a new report. Here's why.

GET YOUR DAILY DOSE OF DS NEWS

Featuring daily updates on foreclosure, REO, and the secondary market, DS News has the timely and relevant content you need to stay at the top of your game. Get each day’s most important default servicing news and market information delivered directly to your inbox, complimentary, when you subscribe.