Fannie Mae picks the winner of the first non-performing loan sale of 2022
Fannie Mae picked the winning bidder for its inaugural 2022 non-performing loan sale, a transaction involving 3,223 loans with an outstanding principal balance of $477.2 million that was split into two separate pools.
The highest bidder is MCLP Asset Co., which is registered as a debt collection agency with the New York City Department of Consumer Affairs and lists its address as a Manhattan property which also houses Goldman Sachs Headquarters – 200 West Street Manhattan . Fannie Mae identifies MCLP as being affiliated with Goldman Sachs in its announcement of the deal.
The nonperforming loans involved in the deal, dubbed FNMA 2022-NPL1, were split into two pools, with MCLP being the winning bidder for both pools. Group 1 included 1,635 loans valued at $250.3 million, with an average loan size of $153,097 and an average mortgage rate of 4.62%. Group 2 comprises 1,588 loans valued at $226.9 million, with an average loan size of $142,888 and an average note rate of 4.86%.
BofA Securities Inc. and First Financial Network Inc. acting as advisers to the transaction. The transaction, which represents Fannie Mae’s first sale of non-performing loans this year, is expected to close on July 27. This is the nineteenth sale of non-performing loans since the inaugural sale in 2015.
Terms of the sale were not disclosed. The cover bids, which represent the second highest bid per pool, were however 94.59% of the outstanding principal balance (UPB) for Pool 1 and 101.59% of the UPB for Pool 2.
A third pool of non-performing loans that is part of the package is still to be auctioned, with bids due June 21. This pool, dubbed the Community Impact Pool (CIP), comprises 120 loans with a UPB of $36.3 million.
“CIPs are typically smaller loan pools that are geographically targeted and marketed to encourage participation from nonprofits, minority and women-owned businesses, and small investors,” Fannie Mae says in its announcement. initial sale of non-performing loans. In this case, the CIP is made up of loans made in the New York area.
The sales of non-performing mortgages are intended to reduce the number of badly delinquent loans held by Fannie Mae in an effort to help stabilize neighborhoods and also meet the portfolio reduction targets established as part of the agreement. purchase of Fannie first preferred shares with the US Treasury.
“All buyers [of the nonperforming loans] are obligated to honor all loss mitigation efforts approved or in progress at the time of the sale, including forbearance agreements and loan modifications,” Fannie Mae said in its announcement of the loan sale. “In addition, buyers should offer defaulting borrowers a cascade of loss mitigation options, including loan modifications, which may include forgiveness of principal, before initiating foreclosure on any loan.”
In a related development, earlier this month Fannie Mae unveiled its third repeatable loan sale of the year, an offering of some 10,000 loans valued at $1.57 billion.
The offering, dubbed FNMA 2022-RPL3, represents the agency’s 26th recurring loan sale since the inaugural offering in October 2016, which involved a pool of 3,600 recurring loans valued at around $806 million. A reproductive loan is a mortgage that has been or is currently in arrears but has been reproductive for a period of time.