Home / Daily Dose / Second Fannie Mae NPL Sale Completed for $765 Million
Print This Post Print This Post

Second Fannie Mae NPL Sale Completed for $765 Million

money-fourFannie Mae announced the winning bidder for its second-ever sale of deeply delinquent non-performing loans (NPLs) on Thursday, which included approximately 3,900 loans.

The two larger pools in the transaction totaled $765 million in unpaid principal balance (UPB), according to Fannie Mae. The winner of the two larger pools was Lone Star (LSF9 Mortgage Holdings) and the transaction is expected to close on September 25.

"The goal of non-performing loans 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. "Our goal is to market these loans to a diverse range of buyers, including non-profit organizations, smaller investors and minority- and women-owned businesses."

Fannie Mae began marketing this NPL transaction on July 16 in collaboration with Credit Suisse Securities, Wells Fargo Securities, and the Williams Capital Group. The breakdown of the two larger pools is as follows:

Pool #1

  • 831 loans
  • Aggregate UPB of $175.5 million
  • Average loan size of $211,179
  • Average note rate of 5.00%
  • Average delinquency 37 months
  • Average BPO LTV of 137%

Pool #2

  • 3,034 loans
  • Aggregate UPB of $589.5 million
  • Average loan size of $194,298
  • Average note rate of 5.27%
  • Average delinquency 37 months
  • Average BPO LTV of 68%

In addition to the two larger pools, this NPL sale by Fannie Mae includes a smaller Community Impact Pool consisting of about 75 loans totaling $11 million in UPB. The Community Impact Pool is a geographically focused, high occupancy pool that is being marketed to encourage minority- and women-owned businesses (MWOBs) to participate. Bidders for the Community Impact Pool have additional time to participate in order to be as inclusive as possible; bids are due by August 25.

"The goal of non-performing loans 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." —Joy Cianci, Fannie Mae’s SVP for Credit Portfolio Management.

In May, Fannie Mae closed its first-ever bulk NPL sale. That transaction included approximately 3,000 deeply delinquent residential single-family mortgage loans totaling about $762 million in UPB. Freddie Mac recently announced its sixth NPL transaction of 2015 (with $1.2 billion in UPB) and seventh overall since July 2014. Freddie Mae's previous NPL sales have totaled approximately $2.76 billion in UPB. The last one, which was completed on July 28, was comprised of 3,577 deeply delinquent loans with $591 million in UPB.

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

American Advisors Group Name Ed Robinson President and COO

American Advisors Group (AAG), has named Ed Robinson as their new President and COO. The ...

Your Daily Dose of DS News

Get the news you need, when you need it. Subscribe to the Daily Dose of DS News to receive each day’s most important default servicing news and market information, absolutely free of charge.