Fortress, Goldman Sachs Win Bids On Fannie Mae NPLs

Fortress (New Residential Investment Corp.) and Goldman Sachs (MTGLQ Investors LP) are the winning bidders for three pools of nonperforming loans with a total of $1.24 billion in unpaid principal balance (UPB) auctioned recently by Fannie Mae.

The sale of the approximately 7,000 loans is expected to close on Dec. 17, Fannie Mae says in a release.

Credit Suisse Securities (USA), Bank of America Merrill Lynch, JPMorgan Securities and the Williams Capital Group LP, helped facilitate the sale.

Fannie Mae began marketing these loans to potential bidders on Oct. 9.

Pool 1 of the portfolio is approximately $419 million in UPB, Pool 2 is approximately $590 million in UPB, and Pool 3 is approximately $235 million in UPB.

The cover bid price for Pool 1 is 72.36% of UPB (64.74% broker price opinion (BPO)), Pool 2 is 87.76% of UPB (52.81% BPO) and Pool 3 is 54.75% UPB (68.80% BPO). The average loan size was $177,251, and the weighted average note rate was 5.20%. The average delinquency of the loans was approximately 41 months with a weighted average BPO loan-to-value ratio of 95%.

Fortress purchased Pools 1 and Pool 3, while Goldman Sachs purchased Pool 2.

‘The nonperforming loans included in this sale are severely delinquent, and despite our ongoing efforts to offer loss mitigation on these loans, they remain nonperforming,’ says Joy Cianci, senior vice president for credit portfolio management for Fannie Mae. ‘We are offering nonperforming loan sales to investors and their servicers who can help borrowers avoid foreclosure wherever possible by applying a wider range of loss mitigation options than we have available.’


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