Let the Bidding Begin: Seventh Non-Performing Loan Sale Announced

Fannie Mae recently announced the sale of its latest non-performing loans. Included in these pools is the fifth Community Impact Pool, offered by the company.  The announcement states that this smaller pool of loans is geographically-focused, high occupancy, and is being marketed to encourage participation by smaller investors, non-profit organizations, and minority- and women-owned businesses.

The four larger pools for sale consist of approximately 6,900 loans totaling $1.08 billion in unpaid principal balance (UPB). Additionally, the Community Impact Pool consists of approximately 120 loans focused in the Miami, Florida area and totals $20.7 million in UPB. All pools are available for purchase by qualified bidders, according to Fannie Mae. This sale of non-performing loans is being marketed in collaboration with Wells Fargo Securities, LLC and The Williams Capital Group, L.P. as advisors.

“We continue to strive to help struggling homeowners and neighborhoods recover,” said Joy Cianci, Fannie Mae’s Senior Vice President, Single-Family Credit Portfolio Management. “Today’s announcement of our non-performing loan sale furthers this commitment by expanding the opportunities available for borrowers to avoid foreclosure.”

The announcement states that bids are due on the four larger pools on August 30th and on the Community Impact Pool on September 15th.

Terms of Fannie Mae’s non-performing loan transactions, according to the announcement, require that when a foreclosure cannot be prevented, the owner of the loan must market the property to owner-occupants and non-profits exclusively before offering it to investors.

 

Today’s announcement of our non-performing loan sale furthers this commitment by expanding the opportunities available for borrowers to avoid foreclosure.

- Joy Cianci, Fannie Mae

 

This is non-performing loan sale marks the seventh sale from Fannie Mae since they announced the commencement of this transactions with the intentions to reduce the number of seriously delinquent loans that Fannie Mae owns, help stabilize neighborhoods, and offer borrowers access to additional foreclosure prevention options.

A recap of Fannie Mae’s six previous NPL sales:

• July 2016—9,300 loans totaling $1.5 billion in UPB, divided among six pools; winning bidders for the transaction are LSF9 Mortgage Holdings, LLC (Lone Star) and PRMF Acquisition LLC (Neuberger Berman), with three pools going to each bidder.
• May 2016—7,900 loans totaling $1.48 billion in UPB, divided amongst four pools; winning bidder for the transaction is Goldman Sachs (MTGLQ Investors, L.P.) for all four pools.
• February 2016—6,500 loans totaling $1.32 billion in unpaid principal balance, divided amongst four pools; winning bidders for the transaction, are Canyon Partners (Carlsbad Funding Mortgage Loan Acquisition, LP) for the first pool, Pretium Mortgage Credit Partners I Loan Acquisition, LP for the second pool and Goldman Sachs (MTGLQ Investors, L.P.) for the third and fourth pool.
• October 2015—7,000 loans, three pools, $1.24 billion in UPB; winning bidders were Fortress (New Residential Investment Corp.) for the first and third pools and Goldman Sachs for the second pool.
• July 2015—3,900 loans, two pools, $765 million in UPB; both pools were won by Lone Star (LSF9 Mortgage Holdings). In addition to these two pools, Fannie Mae conducted a Community Impact Pool auction that included 71 loans in Florida totaling $10 million in UPB. The winning bidder was a non-profit, New Jersey Community Capital.
• April 2015—3,000 loans, two pools, $762 million in UPB; winning bidders were SW Sponsor for the first pool and Neuberger Berman Fixed Income Funds’ affiliate PRMF Acquisition for the second pool.
• Totals (including the sale just announced)—44,500 loans, $8.1 billion in UPB

Additionally, Fannie Mae previously offered Community Impact Pool sales in 2015 and early 2016.