16 Sep Fannie Mae announce sale of more than $1 billion in non-performing loans
Sale includes Community Impact Pool
Source: HousingWire September 12, 2019 Kelsey Ramírez
Fannie Mae began marketing its latest sale of non-performing loans totaling more than $1 billion in unpaid principal balance.
The latest non-performing loans sale included the company’s sixteenth Community Impact Pool.
Community Impact Pools 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.
The sale includes four larger pools with about 5,400 loans totaling $986.4 million in unpaid principal balance and the Community Impact Pool contains about 90 loans totaling $21 million in unpaid principal balance.
The loans in the Community Impact Pool are located in the Miami-Dade, Florida area.
The non-performing loan sale is being marketed in collaboration with Bank of America Merrill Lynch and First Financial Network as advisors.
Bids are due on the four larger pools on October 3rd and on the Community Impact Pool on October 22nd.
Among other elements, terms of Fannie Mae’s non-performing loan transactions require the buyer of the non-performing loans to pursue loss mitigation options that are sustainable for borrowers. In the event a foreclosure cannot be prevented, the owner of the loan must market the property to owner-occupants and non-profits exclusively before offering it to investors, similar to Fannie Mae’s FirstLook program.