New Jersey Community Capital Buys Pool Of NPLs From Fannie Mae

New Jersey Community Capital, a nonprofit community development financial institution, is the winning bidder on a pool of nonperforming mortgage loans (NPLs) with an unpaid principal balance (UPB) of approximately $26 million recently auctioned by Fannie Mae.

The Community Impact Pool of 158 loans is secured by properties located in the New York and New Jersey area, Fannie Mae says in a release. This is the sixth Community Impact Pool of NPLs the company has auctioned since it began divesting itself of its nonperforming assets in an effort to reduce taxpayer risk, as well as lower operating expenses.

The transaction is expected to close on May 23.

Fannie Mae sold the pool in collaboration with Bank of America Merrill Lynch and The Williams Capital Group LP.

The average loan size for the pool was $164,360. It had a weighted average note rate of 5.29%; a weighted average delinquency of 46 months; and a weighted average broker’s price opinion loan-to-value ratio of 93.46%.

The cover bid price was 50.2% of UPB (46.9% of broker price opinion).


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