Fannie Mae Announces Winner of Twenty-Second Community Impact Pool of Non-Performing Loans

Rhea-AI Summary

Fannie Mae (FNMA) announces the winning bidder for its twenty-second Community Impact Pool (CIP) of non-performing loans, totaling $18.4 million in unpaid principal balance. The winning bidder, 510 Residential Loan Acquisition V LLC (400 Capital), will close the transaction on January 22, 2024. The pool includes 61 loans with an average size of $301,717 and a weighted average note rate of 5.75%. The cover bid for the CIP was 82.12% of UPB (30.89% of BPO). All purchasers must honor loss mitigation efforts and offer delinquent borrowers a waterfall of options before initiating foreclosure.

Positive

• The winning bid for the CIP indicates strong investor interest in non-performing loans, potentially leading to a positive impact on Fannie Mae's financials and balance sheet.
• The requirement for purchasers to honor loss mitigation efforts and offer delinquent borrowers a range of options before foreclosure demonstrates Fannie Mae's commitment to responsible lending practices.

Negative

• None.

WASHINGTON, Nov. 21, 2023 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced the winning bidder for its twenty-second Community Impact Pool (CIP) of non-performing loans. The transaction is expected to close on January 22, 2024, and includes approximately 61 loans totaling $18.4 million in unpaid principal balance (UPB). The loans are geographically focused in the New York area, and the winning bidder was 510 Residential Loan Acquisition V LLC (400 Capital). The pool was marketed with BofA Securities, Inc. and First Financial Network, Inc. as advisors.

The CIP awarded in this most recent transaction includes 61 loans with an aggregate UPB of $18,404,738; average loan size of $301,717; and weighted average note rate of 5.75%.

The cover bid, which was the second highest bid, for the CIP was 82.12% of UPB (30.89% of BPO).

All purchasers are required to honor any approved or in-process loss mitigation efforts at the time of sale, including forbearance arrangements and loan modifications. In addition, purchasers 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.

Interested bidders can register for ongoing announcements, training, and other information here. Fannie Mae will also post information about specific pools available for purchase on that page.

About Fannie Mae
Fannie Mae advances equitable and sustainable access to homeownership and quality, affordable rental housing for millions of people across America. We enable the 30-year fixed-rate mortgage and drive responsible innovation to make homebuying and renting easier, fairer, and more accessible. To learn more, visit:
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SOURCE Fannie Mae

FAQ

What is the winning bidder for the twenty-second Community Impact Pool (CIP) of non-performing loans announced by Fannie Mae (FNMA)?

The winning bidder is 510 Residential Loan Acquisition V LLC (400 Capital).

When is the transaction expected to close for the CIP of non-performing loans announced by Fannie Mae (FNMA)?

The transaction is expected to close on January 22, 2024.

How many loans are included in the CIP announced by Fannie Mae (FNMA)?

The CIP includes approximately 61 loans.

What is the total unpaid principal balance (UPB) of the loans in the CIP announced by Fannie Mae (FNMA)?

The total UPB of the loans is $18.4 million.

What is the average note rate of the loans in the CIP announced by Fannie Mae (FNMA)?

The weighted average note rate of the loans is 5.75%.

What was the cover bid for the CIP announced by Fannie Mae (FNMA)?

The cover bid was 82.12% of UPB (30.89% of BPO).

What are the requirements for purchasers of the CIP announced by Fannie Mae (FNMA)?

Purchasers must honor loss mitigation efforts and offer delinquent borrowers a waterfall of options before initiating foreclosure.