Politics & MoneyMortgage

Fannie Mae selling $1.23bn in NPLs to Goldman Sachs subsidiary

MTGLQ Investors buying another 7,500 loans

Fannie Mae just announced the results of its latest sale of non-performing loans and the winning bidder is a familiar name – MTGLQ Investors.

MTGLQ Investors is a “significant subsidiary” of Goldman Sachs, and over the last few years, Goldman Sachs used MTGLQ Investors to buy billions and billions in loans from both of the government-sponsored enterprises.

In this latest deal, MTGLQ Investors is buying 7,500 non-performing loans that carry a total unpaid principal balance of $1.23 billion.

Fannie Mae began marketing the sale back in October.

The sale is divided up into four pools.

The group 1 pool contains 756 loans with an aggregate unpaid principal balance of $133,922,761. The average loan size in the pool $177,147; and the loans carry a weighted average note rate of 4.3%.

Additionally, the loans in pool 1 carry a weighted average delinquency of 28 months; and a weighted average broker’s price opinion loan-to-value ratio of 86%.

The group 2 pool contains 1,460 loans with an aggregate unpaid principal balance of $241,360,082. The loans have an average loan size of $165,315; and a weighted average note rate of 4.48%.

The loans in pool 2 have a weighted average delinquency of 22 months; and a weighted average BPO loan-to-value ratio of 69%.

The group 3 pool contains 3,381 loans with an aggregate unpaid principal balance of $475,718,218. The average loan size is $140,703; and the loans carry a weighted average note rate of 4.89%.

The loans in group 3 carry a weighted average delinquency of 26 months; and a weighted average BPO loan-to-value ratio of 55%.

The group 4 pool contains 1,879 loans with an aggregate unpaid principal balance of $376,985,499. The loans have an average loan size of $200,631; and a weighted average note rate of 4.25%.

Additionally, the loans in pool 4 have a weighted average delinquency of 26 months; and a weighted average BPO loan-to-value ratio of 115%.

According to Fannie Mae, the cover bid, which is the second highest bid received by the GSE, was 78.16% of UPB (or 56.68% of BPO) for the total of the four pools, which were purchased on an all-or-none basis.

The sale is expected to close on Dec. 21, 2017, Fannie Mae said.

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