Fannie Mae Announces Winning Bids for its First Sale of Non-Performing Loans

Keosha Burns

202-752-7840

WASHINGTON, DC – Fannie Mae (FNMA/OTC) today announced it has awarded its initial sale of non-performing loans (NPL) to the winning bidders. The transactions are expected to close in mid-June, and include approximately 3,000 loans totaling $762 million in unpaid principal balance (UPB). The winning bidder of Pool #1 was SW Sponsor, LLC and Pool #2 was Neuberger Berman Fixed Income Funds’ affiliate PRMF Acquisition LLC.

In collaboration with Bank of America Merrill Lynch, Credit Suisse and The Williams Capital Group, Fannie Mae began marketing these loans to potential bidders on April 8. The loans were offered in two separate pools:

• Pool #1:  710 loans with an aggregate UPB of $173.8 million.
• Pool #2:  2,358 loans with an aggregate UPB of $587.9 million.

The cover bid prices (second highest bids) for Pool #1 is 71.9% of Broker Price Option (BPO) (58.8% UPB) and for Pool #2 is 71.0% of BPO (57.8% UPB). The average loan size and average note rate on the aggregate of the two pools were $248,285 and 5.93%, respectively. The average delinquency of the loans was approximately five years with an average BPO LTV of 123%.

For more information on the FHFA Non-performing Loan Sale guidelines or if you are an interested buyer, you can register for ongoing announcements, training and other information at: https://www.fanniemae.com/portal/funding-the-market/npl/index.html.