Fannie Mae [1] has revealed the winning bidder [2] 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 [3]), 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 [4] and The Williams Capital Group, L.P. [5] According to the GSE [6], 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 [7], 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 [8] 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.”