InvestmentsMortgage

Fannie Mae selling billions in re-performing loans to Goldman Sachs, Nomura

GSE also announces sale nearly $2 billion sale of non-performing loans

Continuing with its recent tradition of selling delinquent or once-delinquent loans to some of Wall Street’s most notable firms, Fannie Mae announced Thursday that it is selling billions in re-performing loans to Goldman Sachs, Nomura, and others.

The sales are the result of Fannie Mae’s eighth sale of re-performing loans, which was originally announced in August. Re-performing loans are loans that were once delinquent but are now current, whether due to a mortgage modification or not.

In this sale, Fannie Mae is selling 18,300 re-performing loans that total $3.58 billion in unpaid principal balance. This sale consists of four pools of loans of various sizes.

Goldman Sachs was the winning bidder for the biggest of the four pools, pool #4. Through the sale, Goldman Sachs Mortgage Company will be acquiring 8,277 loans that carry an aggregate unpaid principal balance of $1.94 billion.

The loans in that pool have an average loan size of $234,267; a weighted average note rate of 3.42%; and a weighted average broker's price opinion loan-to-value ratio of 89%.

This is hardly the first time that Goldman Sachs has bought loans from one of the government-sponsored enterprises. Back in June, Goldman Sachs bought 9,800 loans with approximately $1.64 billion in unpaid principle balance from Fannie Mae through its MTGLQ Investors subsidiary.

Over the last few years, Goldman Sachs used MTGLQ Investors to buy billions and billions in loans from both of the GSEs.

But now, Goldman Sachs is using its mortgage company to buy the loans.

Nomura Corporate Funding Americas was the winning bidder for pool #1, which contains 3,091 loans with an aggregate unpaid principal balance of $487.78 million. The loans in Pool #1 have an average loan size of $157,808; a weighted average note rate of 4.24%; and a weighted average broker's price opinion loan-to-value ratio of 76%.

Another familiar name, Towd Point Master Funding, was the winning bidder for Pool #2. Last year, Towd Point bought approximately $292 million in previously modified loans from Freddie Mac. And earlier this year, Towd Point bought 6,363 re-performing loans with an aggregate unpaid principal balance of $1.27 billion from Fannie Mae.

In this sale, Towd Point is buying 4,839 loans that carry an aggregate unpaid principal balance of $651.45 million. Those loans carry an average loan size of $134,625; a weighted average note rate of 4.28%; and a weighted average BPO loan-to-value ratio of 69%.

Athene Annuity and Life Company & Athene Annuity & Life Assurance Company was the winning bidder for Pool #3, which contained 2,115 loans with an aggregate unpaid principal balance of $498.75 million.

Those loans have an average loan size of $235,816; a weighted average note rate of 3.42%; and a weighted average BPO loan-to-value ratio of 88%.

According to Fannie Mae, the sales are expected to close in late October.

But that’s not the only bit of business that Fannie is doing in the loan sale department.

Fannie Mae also announced Thursday that it’s planning to sell off nearly $2 billion in non-performing loans.

The sale consists of approximately 10,700 loans that carry a total unpaid principal balance of $1.95 billion, spread across five pools.

The sale also includes a Community Impact Pool of loans. Community Impact Pools are typically smaller pools of loans that are geographically focused, and marketed to encourage participation by non-profit organizations, minority- and women-owned businesses, and smaller investors.

In this sale, the Community Impact Pool consists of approximately 80 loans totaling $28.7 million in UPB. The loans in his pool are located in New York City.

Bids for the non-performing loans are due in October.

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