Fannie Mae announces winner of $23 million non-performing loan sale

Transaction to close mid-December

Fannie Mae announced today the winner of its 14th Community Impact Pool of non-performing loans.

The GSE announced the winning bidder for the loan pool, which totaled $22.9 million in unpaid principal balance, is VWH Capital Management, a minority- and woman-owned business.

The loan pool includes about 66 total loans which are geographically focused in the New York City area. The transaction is expected to close on December 18, 2018.

Fannie Mae began marketing the pool in collaboration with Bank of America Merrill Lynch and First Financial Network to potential bidders on September 13, 2018.

Here are the contents of the pool:

66 loans with an aggregate unpaid principal balance of $22,947,058; with an average loan size of $347,683; weighted average note rate of 5.46%; weighted average delinquency of 66 months; and weighted average broker's price opinion loan-to-value ratio of 63% weighted by UPB.

The cover bid, which is the second highest bid, for the pool totaled 90% of the unpaid principal balance.

Enhancements that the Federal Housing Finance Agency added last year to its requirements encourage sustainable modifications that have the potential to give more borrowers the opportunity for home retention by requiring evaluation of underwater borrowers for modifications that may include principal and/or arrearage forgiveness; forbid “walking away” from vacant homes; and establish more specific proprietary loan modification standards.

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