Home / Daily Dose / Latest Fannie Mae NPL Sale Includes Smaller ‘Community Impact’ Pool
Print This Post Print This Post

Latest Fannie Mae NPL Sale Includes Smaller ‘Community Impact’ Pool

fanniemaeFannie Mae announced its intention to auction three pools of residential single-family non-performing loans (NPLs), the GSE's second-ever bulk NPL sale.

This sale includes two larger pools and a Community Impact Pool, which is a smaller geographically-focused, high occupancy pool. Fannie Mae is marketing the Community Impact Pool to encourage bidding by nonprofits and minority- and women-owned businesses (MWOB).

The loans being offered for sale are deeply delinquent, sometimes by two years or more, meaning many of them are likely either in some stage of foreclosure or loss mitigation.

"The goal of our non-performing loan sales is to be able to offer borrowers additional options to avoid foreclosure, while also reducing the number of seriously delinquent loans in Fannie Mae’s portfolio,” said Joy Cianci, Fannie Mae’s SVP for Credit Portfolio Management. “We hope to inspire opportunities for non-profit organizations, smaller investors, minority- and women-owned businesses and community groups to work together to help more borrowers avoid foreclosure and collaborate on neighborhood stabilization efforts. We recently held a training forum to bring diverse stakeholders together to explore ways to participate in upcoming NPL sales. We’ll learn and evolve our strategy over time to ensure we meet our goals."

Approximately 3,900 loans are contained in the two larger pools with an aggregate unpaid principal balance (UPB) of about $777 million, while the Community Impact Pool contains approximately 75 loans totaling about $11 million in UPB focused in the Tampa, Florida, area. The loans are available for purchase by qualified bidders and are being marketed in collaboration with Credit Suisse, Wells Fargo, and the Williams Capital Group, according to Fannie Mae.

Interested bidders should click here to register for ongoing announcements, training, and other information related to the NPL sale, including information about specific pools. Interested nonprofits, MWOBs and community groups should contact Nadja Fidelia at the Williams Capital Group.

Fannie Mae held its first-ever bulk NPL sale in May. That transaction included approximately 3,000 deeply delinquent residential single-family mortgage loans totaling about $762 million in UPB. The loans were sold in two pools; the winners were SW Sponsor and Neuberger Berman Fixed Income Funds.

Bidders in NPL auctions must meet qualifications set forth by FHFA, Fannie Mae's conservator. In early March, FHFA issued enhanced requirements for the buyers and servicers of Agency non-performing loans that call for bidders to identify servicing partners at the time of qualification and complete a questionnaire to demonstrate a record of successful loan resolution through foreclosure alternatives. As part of the new requirements, servicers who purchase non-performing Agency loans must apply a "waterfall of resolution tactics" before resorting to foreclosure.

About Author: Brian Honea

Brian Honea's writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master's degree from Amberton University in Garland.
x

Check Also

Former President of Carrington Mortgage Services Changing Posts

Ray Brousseau was announced as the Partner and EVP, Strategy and Expansion for River City Mortgage.

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.