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Fannie Mae completes third non-performing loan sale

Fortress and Goldman Sachs named winning bidders

Fannie Mae announced Fortress and Goldman Sachs (GS) as the winning bidders for its third non-performing loan sale of approximately 7,000 loans totaling $1.24 billion in unpaid principal balance, divided among three pools.

The sale was first announced back in October in order to reduce the number of severely delinquent loans Fannie holds and provide borrowers with additional options to avoid foreclosure.

“The non-performing loans included in this sale are severely delinquent and despite our ongoing efforts to offer loss mitigation on these loans, they remain non-performing,” said Joy Cianci, Fannie Mae’s senior vice president for credit portfolio management.

“We are offering non-performing loan sales to investors and their servicers who can help borrowers avoid foreclosure wherever possible by applying a wider range of loss mitigation options than we have available,” added Cianci.

Fortress (New Residential Investment Corp.) won the first and third pools and Goldman Sachs won the second pool, with the transactions expected to close Dec. 17, 2015.

Credit Suisse Securities, JPMorgan Securities, Bank of America Merrill Lynch and the Williams Capital Group L.P. marketed the sale of the non-performing loans.

Here are the details on the three pools:

Pool #1: 1,963 loans with an aggregate UPB of $418,837,669; average loan size $213,366; weighted average note rate 5.21%; average delinquency 52 months; weighted average Broker Price Option (BPO)  LTV of 108%

Pool #2: 3,823 loans with an aggregate UPB of $588,367,863; average loan size $153,902; weighted average note rate 5.32%; average delinquency 34 months; weighted average BPO LTV of 70%

Pool #3: 1,224 loans with an aggregate UPB of $235,320,739; average loan size $192,256; weighted average note rate 4.90%; average delinquency 36 months; weighted average BPO LTV of 135%

The cover bid price for Pool 1 is 72.36% of UPB (64.74% BPO), for Pool 2 is 87.76% of UPB (52.81% BPO) and for Pool 3 is 54.75% UPB (68.80% BPO). 

In addition, the average loan size and weighted average note rate on the aggregate of the three pools were $177,251 and 5.20%, respectively, while the average delinquency of the loans was approximately 41 months with a weighted average BPO LTV of 95%.

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