Fannie Mae announced the winner of its first sale of non-performing loans as part of its “Community Impact Pool” program, which consists of smaller pools of non-performing loans and is designed to attract diverse participation by non-profits, small investors and minority- and women-owned businesses.
Fannie Mae announced Wednesday that it selected New Jersey Community Capital, a non-profit community development financial institution, as the winner of the first Community Impact Pool sale.
The first Community Impact Pool consisted of 71 high-occupancy and geographically focused loans with approximately $10 million in unpaid principal balance.
According to previous information released by Fannie Mae, the loans were focused in the Tampa, Florida-area.
The cover bid price for this pool is 81.43% of UPB, which was 67.13% of the broker’s price opinion. The average loan size on the pool was $143,572 and average note rate was 5.43%.
The average delinquency of the loans was over three years, approximately 39 months, with an average BPO loan-to-value of 82%.
“We’re proud to partner with New Jersey Community Capital to help neighborhoods stabilize and recover,” said Joy Cianci, Fannie Mae’s senior vice president for credit portfolio management.
“This sale will reduce our holdings of non-performing loans while giving homeowners additional options to avoid foreclosure,” Cianci said. “We will continue to structure loan sales to foster participation of non-profits and small investors and we look forward to working closely with these groups.”
According to a release from Fannie Mae, to date, NJCC has acquired 761 troubled mortgages with a total of $193 million in unpaid principal balances and has facilitated the approval of more than 300 affordable mortgage modifications through its loss mitigation programs.
“We are thrilled for the opportunity to continue to expand NJCC’s innovative foreclosure mitigation and prevention programs in Florida to help keep families in their homes and enable distressed communities to flourish,” said Wayne Meyer, NJCC. “Through our loss mitigation programs, which utilize principal reduction as a key part of right sizing borrowers’ first mortgage debt, we have already helped over 200 homeowners in Florida and look forward to continuing this progress.”
The transaction is expected to close on Oct. 26.