Fannie Mae (FNMA/OTC) today announced its latest sale of non-performing loans, including the third Community Impact Pool that the company has offered.
WASHINGTON, DC – Fannie Mae (FNMA/OTC) today announced its latest sale of non-performing loans, including the third Community Impact Pool that the company has offered. This smaller pool of loans is geographically-focused, high occupancy and is being marketed to encourage participation by smaller investors, non-profit organizations and minority- and women-owned businesses (MWOBs).
The four larger pools of approximately 8,200 loans totaling $1.527 billion in unpaid principal balance (UPB) and the Community Impact Pool of approximately 80 loans, focused in the Miami, Florida area, totaling $20 million in UPB, are available for purchase by qualified bidders. This sale of non-performing loans is being marketed in collaboration with Bank of America Merrill Lynch, First Financial Network, Inc. and Castle Oak Securities, L.P. as advisors.
“The non-performing loans that are included in today’s sale announcement have been previously solicited for loss mitigation opportunities by Fannie Mae servicers, but they unfortunately remain seriously delinquent. We believe other investors will offer additional opportunities for these borrowers to avoid foreclosure. We are also pleased to build on the success of our Community Impact Pool sales,” said Joy Cianci, Fannie Mae’s Senior Vice President for Single Family Credit Portfolio Management. “Selling severely delinquent loans can benefit communities and reduce risk for taxpayers. We will continue to structure pool sales to encourage participation from non-profits and minority- and women-owned businesses.”
Fannie Mae previously offered Community Impact Pool sales in 2015 and early 2016 – both were purchased by non-profit New Jersey Community Capital.
Bids are due on the four larger pools on May 5th and on May 19th for the Community Impact Pool.
Among other elements, terms of Fannie Mae’s non-performing loan transactions require that when a foreclosure cannot be prevented, the owner of the loan must market the property to owner-occupants and non-profits exclusively before offering it to investors, similar to Fannie Mae’s FirstLook® program.
Interested bidders can register for future announcements, training and other information at http://www.fanniemae.com/portal/funding-the-market…. Fannie Mae will also post information about specific pools available for purchase on that page.
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