Corona Asset Management XVIII, LLC, is the winning bidder for Fannie Mae’s fourth Community Impact Pool of non-performing loans, according to an announcement from the company. The company says that the transaction is expected to close on September 21, 2016, and will include 80 loans secured by properties located in the Miami, Florida area with an unpaid principal balance of approximately $18.5 million.
Fannie Mae started marketing the Community Impact Pool to potential bidders on June 16 of 2016, working in collaboration with Bank of America Merrill Lynch and CastleOak Securities, L.P.
The loan pool awarded in this particular transaction includes 80 loans containing an aggregate unpaid principal balance of $18,467,573 as well as holding an average loan size of $230,845, a weighted average note rate of 4.86 percent, a weighted average delinquency of 38 months, and a weighted average broker's price opinion loan-to-value ratio of 98 percent.
The report stated that the cover bid price for this Community Impact Pool is 62.4 percent of UPB and 60.9 percent of BPO.
The Federal Housing Finance Agency announced on April 14, 2016 that it was adding additional enhancements to its requirements for sales of non-performing loans by Fannie Mae and Freddie Mac. These enhancements build upon the requirements originally announced in March 2015.
These additional requirements, which apply to this particular Fannie Mae non-performing loan sale, encourage sustainable modifications that have the likelihood of giving more borrowers the opportunity for home retention. This is reported to be achieved by requiring evaluation of underwater borrowers for modifications that may include principal and/or arrearage forgiveness as well as forbidding “walking away” from vacant homes and establishing more specific proprietary loan modification standards.
Prospective buyers can find more information on Fannie Mae’s sales of non-performing loans and on the Federal Housing Finance Agency’s guidelines for these sales at http://www.fanniemae.com/portal/funding-the-market/npl/index.html.