Fannie Mae announces winners of latest non-performing loan sale

Mortgage & Real Estate

Fannie Mae announced the winning bidders for its seventh and eighth Community Impact Pools of non-performing loans.

The transaction is expected to close on August 15, 2017 and includes about 123 loans totaling $31.9 million in unpaid principal balance. It is divided up between two pools in the New York and New Jersey areas.

Fannie Mae announced Matawin Ventures XX, also known as Tourmalet Advisors, as the winner of the first pool and Community Development Fund IV for the second pool.

The company began marketing the pools in collaboration with Wells Fargo Securities and The Williams Capital Group on May 10, 2017.

Here are the details of the two transactions:

Group 1 pool: 67 loans with an aggregate unpaid principal balance of $19,372,214; average loan size $289,138; weighted average note rate 5.34%; weighted average delinquency 53 months; and weighted average broker’s price opinion loan-to-value ratio of 65.17%.

Group 2 pool: 56 loans with an aggregate unpaid principal balance of $12,565,528; average loan size $224,384; weighted average note rate 4.48%; weighted average delinquency 30 months; and weighted average broker’s price opinion loan-to-value ratio of 97.31%.

The cover bids, or second-highest bids, for the pools are 75% of the unpaid principal balance, or 39.73% of broker price opinion, for the first pool and 69.16% of UPB, or 52.21% of broker price opinion, for the second pool.

On April 14, 2016, the Federal Housing Finance Agency announced additional enhancements to its requirements for sales of non-performing loans by Fannie Mae and Freddie Mac that build on requirements originally announced in March 2015 and apply to this Fannie Mae non-performing loan sale.

These added enhancements encourage sustainable modifications that have the potential to give more borrowers the opportunity for home retention by requiring evaluation of underwater borrowers for modifications that may include principal and arrearage forgiveness. The new requirements forbid walking away from vacant homes and establishing more specific proprietary loan modification standards.

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