The loan pool, dubbed the Community Impact Pool (CIP), includes 120 loans with an unpaid principal balance of $36.3 million, an average loan size of $301,412 and an average interest rate of 5.24%. The loans are concentrated in the New York area.
The winning bidder is the State of New York Mortgage Agency Community Restoration Fund (CRF), which is sponsored by the New York State Office of Homes and Community Renewal. The CRF acquires pools of defaulted loans to provide the homeowners with a chance to start over with more affordable house payments and to ensure abandoned homes are sold quickly to owner-occupant buyers, if possible.
“CIPs are typically smaller pools of loans that are geographically focused and marketed to encourage participation by nonprofit organizations, minority- and women-owned businesses and smaller investors,” Fannie Mae stated in its original announcement of the nonperforming loan sale.
The sales of nonperforming mortgages are intended to reduce the number of seriously delinquent loans owned by Fannie Mae with the goal of helping to stabilize neighborhoods and to also meet the portfolio-reduction targets established under Fannie’s senior preferred stock purchase agreement with the U.S. Treasury.
Institutional real estate investors gobbled up record amounts of inventory in almost every corner of the pandemic-induced fever dream that was the 2021 housing market, with one notable exception: distressed properties sold at foreclosure auction.
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The winning bidder for both of those pools was MCLP Asset Co., which is registered as a debt-collection agency with the city of New York’s Department of Consumer Affairs. Its address, 200 West St., is a Manhattan property that’s also is home to Goldman Sachs’ headquarters. Fannie Mae identifies MCLP as being affiliated with Goldman Sachs in its announcement of the deal.
The two nonperforming loans pools sold to MCLP consisted of a total of 3,320 mortgages valued at $489.6 million, according to Fannie Mae.
BofA Securities Inc. acted as advisors for all three loan pools, with First Financial Network Inc. also assisting with the CIP pool. Mr. Cooper is the loans servicer.