Fannie Mae is auctioning two pools of non-performing loans with unpaid principal balances of $296.7 million and $7.2 million.
The larger pool includes approximately 1,766 deeply delinquent loans, while the smaller Community Impact Pool includes approximately 29 loans.
This is the company’s 25th Community Impact Pool offering.
The portfolio of loans consists of loans geographically located in the New York area.
All pools are available for purchase by qualified bidders. This sale of non-performing loans is being marketed in collaboration with BofA Securities Inc. and First Financial Network Inc. as advisors.
Fannie Mae’s CIPs are typically smaller pools of loans that are geographically focused and marketed to encourage participation by non-profit organizations, minority- and women-owned businesses, and smaller investors.
Bids are due on the one large pool by October 3 and on the CIP by October 17.
Terms of Fannie Mae’s non-performing loan transactions require the buyer of the non-performing loans to offer loss mitigation options designed to be sustainable for borrowers. All buyers of non-performing loans are required to honor any approved or in-process loss mitigation efforts at the time of closing, including forbearance arrangements and loan modifications.
In addition, non-performing loan buyers must offer delinquent borrowers a waterfall of loss mitigation options, including loan modifications, which may include principal forgiveness, prior to initiating foreclosure on any loan, not secured by property which is vacant or condemned at the time of closing. In the event a foreclosure cannot be prevented, the owner of the loan must market the property to owner-occupants and non-profits before offering it to investors, similar to Fannie Mae’s FirstLook program.
Photo: Eskay Lim
