WASHINGTON, March 28, 2017 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) today announced that New Jersey Community Capital, a non-profit community development financial institution, is the winning bidder of the company's sixth Community Impact Pool of non-performing loans. The transaction is expected to close on May 23, 2017, and includes 158 loans secured by properties located in the New York and New Jersey area with an unpaid principal balance (UPB) of approximately $26 million.
In collaboration with Bank of America Merrill Lynch and The Williams Capital Group, L.P., Fannie Mae began marketing this Community Impact Pool to potential bidders on February 14, 2017.
The loan pool awarded in this most recent transaction includes:
- 158 loans with an aggregate unpaid principal balance of $25,968,898; with an average loan size of $164,360; with a weighted average note rate of 5.29%; with a weighted average delinquency of 46 months; and with a weighted average broker's price opinion loan-to-value ratio of 93.46%.
The cover bid price for this Community Impact Pool is 50.2% of UPB (46.9% of broker price opinion).
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 requirements originally announced in March 2015 and apply to this Fannie Mae non-performing loan sale. These added enhancements encourage sustainable modifications that have the potential to give 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.
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SOURCE Fannie Mae