Investments Lending Servicing

Goldman Sachs subsidiary just bought more non-performing loans from Fannie Mae

Fannie also announces sale of smaller NPL pool to non-profit

Fannie Mae two

For the third time in 2016, MTGLQ Investors, L.P., a "significant subsidiary" of Goldman Sachs is the winning bidder for a pool of non-performing loans from Fannie Mae, pushing the amount of loans sold to MTGLQ Investors over $2 billion in 2016.

According to the Securities and Exchange Commission, Goldman Sachs owns, directly or indirectly, at least 99% of the voting securities of MTGLQ Investors, L.P.

MTGLQ Investors bought its first pool of NPLs from Fannie Mae in February. In that sale, MTGLQ Investors was the winning bidder for two pools of NPLs representing 2,068 loans that carry an unpaid principal balance of $418,414,683.

And earlier this month, MTGLQ Investors was the winning bidder of all four pools of an even larger sale, buying up 7,900 loans, which totaled $1.48 billion in unpaid principal balance.

Fannie Mae announced Thursday that as part of the sale from earlier this month, MTGLQ Investors bought another pool of non-performing loans.

The latest pool of NPLs for MTGLQ Investors includes 1,760 loans with an aggregate unpaid principal balance of $329,788,631.

With this latest NPL purchase, MTGLQ Investors has now purchased more than $2.2 billion in non-performing loans from Fannie Mae this year.

According to Fannie Mae, the loans carry an average loan size $187,380; a weighted average note rate 5.41%; a weighted average delinquency of 49 months; and a weighted average broker’s price opinion loan-to-value ratio of 83%.

Fannie Mae stated that sale price of the pool was in the low 70s as a percentage of unpaid principal balance.

Additionally, Fannie Mae announced that it selected the winning bidder in its third Community Impact Pool sale of non-performing loans.

Community Impact Pool sales are structured to attract diverse participation from non-profits, smaller investors and minority- and women-owned businesses.

According to Fannie Mae, the winning bidder was New Jersey Community Capital. Fannie Mae stated that NJCC purchased the loans through its affiliate, the Community Loan Fund of New Jersey.

The pool of loans purchased by New Jersey Community Capital includes 83 loans secured by properties located in the Miami, Florida area with an unpaid principal balance of approximately $19.7 million.

The average loan size on the pool is $237,672 and the average note rate is 5.07%.  The average delinquency of the loans is 51 months and the loans carry an average broker’s price opinion loan-to-value ratio of 105%.

The sale price for this pool was in the high 60s as a percentage of unpaid principal balance, Fannie Mae said.

New Jersey Community Capital was also the winning bidder for the previous two Community Impact Pool sales.

“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.”

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