Fannie Mae Announces Winners of its Latest Non-Performing Loan Sale

Andrew Wilson

202-752-5168

WASHINGTON, DC – Fannie Mae (FNMA/OTC) today announced the winning bidders for its fourth non-performing loan sale. The sale included approximately 6,500 loans totaling $1.32 billion in unpaid principal balance, divided amongst four pools. The winning bidders for the transaction, expected to close March 28, 2016, are Canyon Partners (Carlsbad Funding Mortgage Loan Acquisition, LP) for the first pool, Pretium Mortgage Credit Partners I Loan Acquisition, LP for the second pool and Goldman Sachs (MTGLQ Investors, L.P.) for the third and fourth pool.

“We are committed to reducing Fannie Mae’s holdings of non-performing loans in a responsible way,” said Joy Cianci, Senior Vice President, Credit Portfolio Management, Fannie Mae. “We continue to work with struggling homeowners to prevent foreclosures whenever we can. This sale of seriously delinquent loans can create additional opportunities for borrowers to avoid foreclosure while reducing the impact of these loans for Fannie Mae and the taxpayers.”

In collaboration with Bank of America Merrill Lynch and First Financial Network, Inc., Fannie Mae began marketing these loans to potential bidders on January 12, 2016. Separately, bids are due on Fannie Mae’s second Community Impact Pool on February 18, 2016.

The loan pools awarded in this most recent transaction include:

  • Pool #1: 3,127 loans with an aggregate unpaid principal balance of $637,451,715; average loan size $203,891; weighted average note rate 5.70%; average delinquency 59 months; weighted average broker’s price opinion loan-to-value ratio of 79%
  • Pool #2: 1,345 loans with an aggregate unpaid principal balance of $266,947,532; average loan size $199,151; weighted average note rate 5.58%; average delinquency 58 months; weighted average broker’s price opinion loan-to-value ratio of 74%
  • Pool #3: 1,176 loans with an aggregate unpaid principal balance of $233,559,463; average loan size $198,712; weighted average note rate 5.59%; average delinquency 59 months; weighted average broker’s price opinion loan-to-value ratio of 79%
  • Pool #4: 892 loans with an aggregate unpaid principal balance of $184,855,220; average loan size $207,217; weighted average note rate 5.65%; average delinquency 59 months; weighted average broker’s price opinion loan-to-value ratio of 86%

The weighted average sale price of the combined pools was in the mid-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.