News Release

November 10, 2016

Fannie Mae Announces the Winner of its Latest Non-Performing Loan Sale

Alicia Jones

202-752-5716

WASHINGTON, DC – Fannie Mae (FNMA/OTC) today announced the winning bidder for its eighth non-performing loan sale. The sale included approximately 6,900 loans totaling $1.3 billion in unpaid principal balance (UPB), divided among five pools. On November 3, 2016 Fannie Mae selected MTGLQ Investors, L.P. (Goldman Sachs) as the winning bidder for the transaction, expected to close on December 23, 2016.

In collaboration with Wells Fargo Securities, LLC, Fannie Mae began marketing these loans to potential bidders on October 11, 2016.

The loan pools awarded in this most recent transaction include:

  • Group 1 Pool: 1,873 loans with an aggregate unpaid principal balance of $364,476,290; average loan size $194,595; weighted average note rate 5.1%; weighted average delinquency 44 months; weighted average broker's price opinion loan-to-value ratio of 96.3%.
  • Group 2 Pool: 1,908 loans with an aggregate unpaid principal balance of $358,667,364; average loan size $187,981; weighted average note rate 5.1%; weighted average delinquency 45 months; weighted average broker's price opinion loan-to-value ratio of 97.6%.
  • Group 3 Pool: 1,864 loans with an aggregate unpaid principal balance of $330,111,531; average loan size $177,098; weighted average note rate 5.3%; weighted average delinquency 45 months; weighted average broker's price opinion loan-to-value ratio of 72.6%.
  • Group 4 Pool: 987 loans with an aggregate unpaid principal balance of $217,547,090; average loan size $220,321; weighted average note rate 4.9%; weighted average delinquency 44 months; weighted average broker's price opinion loan-to-value ratio of 134.2%.
  • Group 5 Pool: 302 loans with an aggregate unpaid principal balance of $56,090,719; average loan size $185,731; weighted average note rate 4.5%; weighted average delinquency 35 months; weighted average broker's price opinion loan-to-value ratio of 131%.

The cover bid, which is the second highest bid, for Pool 1 is 69.3% of UPB (55.2% of Broker Price Opinion - BPO), for Pool 2 is 68.3% UPB (55.0% BPO), for Pool 3 is 86.5% UPB (56.0% BPO), for Pool 4 is 52.3% UPB (65.9% BPO) and for Pool 5 is 67.1% UPB (76.0% BPO).

On April 14, 2016, the Federal Housing Finance Agency announced additional enhancements to its requirements for sales of non-performing loans by Fannie Mae and Freddie Mac that build on the requirements originally announced in March 2015. The additional requirements, which apply to this Fannie Mae non-performing loan sale, encourage sustainable modifications that have the potential to provide more borrowers the opportunity for home retention by requiring evaluation of underwater borrowers for modifications that may include principal and/or arrearage forgiveness; forbidding “walking away” from vacant homes; and establishing more specific proprietary loan modification standards.

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.

Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/FannieMae.