Fannie Mae Announces Winner of Third Community Impact Pool of Non-Performing Loans

Company Also Sells Additional Pool of Non-Performing Loans

Callie Dosberg

202-752-3117

WASHINGTON, DC – Fannie Mae (FNMA/OTC) today announced that New Jersey Community Capital (NJCC), a non-profit Community Development Financial Institution (CDFI), is the winning bidder on the company’s third Community Impact Pool of non-performing loans.  NJCC purchased these loans through its affiliate, the Community Loan Fund of New Jersey, Inc.  This pool of loans was structured to attract diverse participation from non-profits, smaller investors and minority- and women-owned businesses.  The transaction is expected to close on July 25, 2016, and includes 83 loans secured by properties located in the Miami, Florida area with an unpaid principal balance of approximately $19.7 million.  NJCC also previously purchased Fannie Mae’s first and second Community Impact Pools.

“We continue to seek buyers for our non-performing loans that will take actionable steps to help struggling homeowners avoid foreclosure and help stabilize neighborhoods,” said Joy Cianci, Senior Vice President, Single-Family Credit Portfolio Management, Fannie Mae. “We actively work with non-profit organizations across the country to address the needs of borrowers in hard hit communities, and we are happy to award our Community Impact Pool to NJCC.”

In collaboration with Bank of America Merrill Lynch and First Financial Network, Inc., Fannie Mae began marketing this Community Impact Pool to potential bidders on April 12, 2016.

The sale price for this pool was in the high 60s as a percentage of unpaid principal balance. The average loan size on the pool was $237,672 and the average note rate was 5.07%.  The average delinquency of the loans was 51 months with an average broker’s price opinion loan-to-value ratio of 105%.

Fannie Mae today also announced the sale of an additional non-performing loan pool. This sale took place in conjunction with the company’s fifth non-performing loan sale. The purchaser of the pool, expected to close on July 26, 2016, is Goldman Sachs (MTGLQ Investors, L.P.).

The loans in this transaction include:

  • 1,760 loans with an aggregate unpaid principal balance of $329,788,631; average loan size $187,380; weighted average note rate 5.41%; weighted average delinquency 49 months; weighted average broker’s price opinion loan-to-value ratio of 83%

The sale price of the pool was in the low 70s as a percentage of unpaid principal balance. 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 athttp://www.fanniemae.com/portal/funding-the-market/npl/index.html.