News and Updates

Fannie Mae sells off $26 million in NPLs to nonprofit

Fannie Mae announced the winning bidder of its sixth Community Impact Pool of non-performing loans.

The winner, New Jersey Community Capital, is a nonprofit community development financial institution, and will close on the transaction on May 23, 2017. The deal includes 158 loans secured by properties located in the New York and New Jersey area. The unpaid principal balance on the loans totals about $26 million.

Fannie Mae began marketing this Community Impact Pool to bidders in February in collaboration with Bank of America Merrill Lynch and The Williams Capital Group.

This loan pool transaction includes 158 loans with an aggregate unpaid principal balance of $25,968,898, with an average loan size of $164,360. The weighted average note rate rests at 5.29% and the pool holds a weighted average delinquency of 46 months. The weighted average broker’s price opinion loan-to-value ratio is 93.46%.

The cover bid for this Community Impact Pool is 50.2% of the unpaid principal balance.

The pool’s added requirements, which the Federal Housing Finance Agency announced in 2016, require evaluations of underwater borrowers for modifications that may include principal and arrearage forgiveness. It also forbids walking away from vacant homes and establishes more specific proprietary loan modification standards.