July 14, 2016
Fannie Mae Announces Winners of its Latest Non-Performing Loan Sale
WASHINGTON, DC – Fannie Mae (FNMA/OTC) today announced the winning bidders for its sixth non-performing loan sale. The sale included approximately 9,300 loans totaling $1.5 billion in unpaid principal balance, divided among six pools. The winning bidders for the transaction, expected to close on August 24, 2016, are LSF9 Mortgage Holdings, LLC (Lone Star) and PRMF Acquisition LLC (Neuberger Berman), with three pools going to each bidder.
In collaboration with Bank of America Merrill Lynch and CastleOak Securities, L.P., Fannie Mae began marketing these loans to potential bidders on June 16, 2016. Separately, bids are due on Fannie Mae’s fourth Community Impact Pool on July 21, 2016, which is also part of the offering.
The loan pools awarded in this most recent transaction include:
- Group 1 Pools: 4,537 loans with an aggregate unpaid principal balance of $746,438,433; average loan size $162,964; weighted average note rate 4.51%; weighted average delinquency 34 months; weighted average broker’s price opinion loan-to-value ratio of 67%.
- Group 2 Pools: 4,721 loans with an aggregate unpaid principal balance of $759,860,824; average loan size $160,148; weighted average note rate 5.24%; weighted average delinquency 27 months; weighted average broker’s price opinion loan-to-value ratio of 82%.
The cover bid price for Group 1 is 78.2% of UPB (52.2% BPO) and for Group 2 is 71.0% UPB (58.0% BPO).
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 the requirements originally announced in March 2015. The additional requirements, which apply to this Fannie Mae non-performing loan sale, encourage sustainable modifications that have the potential to provide more borrowers the opportunity for home retention by requiring evaluation of underwater borrowers for modifications that may include principal and/or arrearage forgiveness; forbidding “walking away” from vacant homes; and establishing more specific proprietary loan modification standards.
Potential buyers can register for ongoing announcements or training, and 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.
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