This week, Fannie Mae [1] announced the latest sale of its of non-performing loans, including the company's sixteenth Community Impact Pool, as well as the results of the GSE’s thirteenth reperforming loan sale transaction.
The new non-performing loan sale includes four larger pools include approximately 5,400 loans totaling $986.4 million in unpaid principal balance (UPB) and the Community Impact Pool of approximately 90 loans totaling $21 million in UPB. The Community Impact Pool consists of loans geographically located in Miami-Dade area. All pools are available for purchase by qualified bidders, interested bidders can register here. [2]
This sale of non-performing loans is being marketed in collaboration with Bank of America Merrill Lynch and First Financial Network, Inc. as advisors.
Bids are due on the four larger pools on October 3 and on the Community Impact Pool on October 22.
“Among other elements, terms of Fannie Mae’s non-performing loan transactions require the buyer of the non-performing loans to pursue loss mitigation options that are sustainable for borrowers,” Fannie Mae notes. “In the event 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, similar to Fannie Mae's FirstLook program.”
The latest reperforming loan sale, expected to close on October 25, included the sale of approximately 29,400 loans totaling $5.1 billion in unpaid principal balance (UPB), divided into six pools. The winning bidders of the six pools for the transaction were Goldman Sachs Mortgage Company (Goldman Sachs) for Pool 1, Towd Point Master Funding LLC (Cerberus) for Pools 2, 3, 4, NRZ Mortgage Holdings, LLC (Fortress) for Pool 5, and DLJ Mortgage Capital, Inc. (Credit Suisse) for Pool 6.
The cover bids, which are the second highest bids per pool, were 96.40% of UPB (68.93% of BPO) for Pool 1, 98.75% of UPB (72.64% of BPO) for Pool 2, 103.00% of UPB (56.02% of BPO) for Pool 3, 94.52% of UPB (61.97% of BPO) for Pool 4, 95.25% of UPB (59.15% of BPO) for Pool 5 and 92.28% of UPB (59.17% of BPO) for Pool 6.