News Release

February 25, 2016

Fannie Mae Announces Winner of Second Community Impact Pool of Non-Performing Loans

Company Continues to Seek Diverse Buyers of Non-Performing Loans

Andrew Wilson

202-752-5168

WASHINGTON, DC – Fannie Mae (FNMA/OTC) today announced that New Jersey Community Capital (NJCC), a non-profit Community Development Financial Institution (CDFI), is the winning bidder on the company’s second Community Impact Pool of non-performing loans.  NJCC purchased these loans through its affiliate, the Community Loan Fund of New Jersey, Inc.  This pool of loans was structured to attract diverse participation from non-profits, smaller investors and minority- and women-owned businesses.  The transaction is expected to close on April 21, 2016, and includes 53 loans on properties in the Miami, Florida area with an unpaid principal balance of approximately $13.2 million.  NJCC also previously purchased Fannie Mae’s first Community Impact Pool.

“We’re pleased that New Jersey Community Capital continues to be an active participant in our non-performing loan sales as part of their continuing efforts to help stabilize neighborhoods,” said Joy Cianci, Senior Vice President, Credit Portfolio Management, Fannie Mae. “This sale was designed to give homeowners as many options as possible to avoid foreclosure. Fannie Mae will continue to seek opportunities for a diverse range of buyers to participate in our sales of non-performing loans.”

“We are so excited to win this second Community Impact Pool and continue working with our local nonprofit players to expand NJCC’s innovative foreclosure mitigation and prevention programs in Florida,” said Wayne T. Meyer, NJCC. “These programs help to keep families in their homes while working to stabilize the surrounding communities. We have already helped over 425 homeowners in Florida through our loss mitigation program, and look forward to continuing this progress.”

In collaboration with Bank of America Merrill Lynch and First Financial Network, Inc., Fannie Mae began marketing this Community Impact Pool to potential bidders on January 12, 2016.

The cover bid price for this pool was 50.51% of unpaid principal balance (69.00% of the broker’s price opinion).  The average loan size on the pool was $250,209 and the average note rate was 5.83%.  The average delinquency of the loans was over 5 years (approximately 69 months) with an average broker’s price opinion loan-to-value ratio of 137%.

Potential buyers can register for ongoing announcements or training, and find more information on Fannie Mae’s sales of non-performing loans and on the Federal Housing Finance Agency’s guidelines for these sales at http://www.fanniemae.com/portal/funding-the-market/npl/index.html.

About New Jersey Community Capital

New Jersey Community Capital (NJCC) is a nonprofit community development financial institution that transforms at-risk communities through strategic investments of capital and knowledge. NJCC invests in affordable housing, community facilities, and economic development ventures that strengthen neighborhoods, improve education, and increase jobs, ultimately providing greater opportunities for low-income populations. To date, NJCC has acquired 761 troubled mortgages with a total of $193 million in unpaid principal balances and has facilitated the approval of more than 300 affordable mortgage modifications through its loss mitigation programs. Since inception, NJCC has facilitated the investment of over $500 million into 800 high-impact projects across its home state of New Jersey, supporting the creation and preservation of 12,900 education seats, 8,200 housing units, 6,100 early care slots, and 6,100 jobs. For more information, please visit www.newjerseycommunitycapital.org.

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