PR Newswire
WASHINGTON, Nov. 22, 2017
WASHINGTON, Nov. 22, 2017 /PRNewswire/ -- Fannie Mae (OTC
Bulletin Board: FNMA) today announced the winning bidders for its ninth and tenth Community Impact Pools of non-performing loans.
The transaction is expected to close on January 12, 2018, and includes approximately 690 loans
totaling $124.12 million in unpaid principal balance (UPB), divided between two pools; the loans in
pool 1 are in a larger geographically dispersed area and the loans in pool 2 are in New York
City. The winning bidders for the transaction were the Community Loan Fund of New Jersey Inc. (NJCC) for Pool 1 and
Preserving City Neighborhoods Housing Development Fund Cooperation for Pool 2. Both firms are non-profit entities.
In collaboration with Bank of America Merrill Lynch and First Financial Network, Inc., Fannie Mae began marketing these loans
to potential bidders on October 11, 2017.
The loan pools awarded in this most recent transaction include:
- Pool 1: 635 loans with an aggregate unpaid principal balance of $110,265,681; average loan
size of $173,647; weighted average note rate of 5.64%; weighted average delinquency of 43 months;
and weighted average broker's price opinion loan-to-value ratio of 82%.
- Pool 2: 55 loans with an aggregate unpaid principal balance of $13,860,506; average loan size
of $252,009; weighted average note rate of 6.62%; weighted average delinquency of 68 months; and
weighted average broker's price opinion loan-to-value ratio of 65%.
The cover bids, which are the second highest bids, for the Community Impact Pools are 85.02% of UPB (55.26% of broker's price
opinion) for Pool 1 and 89.87% of UPB (43.66% of broker's price opinion) for Pool 2.
On September 27, 2017, 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/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.
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We
partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing
finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/fanniemae .
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SOURCE Fannie Mae