Fannie Mae is selling three pools of nonperforming loans totaling $788 million in unpaid principal balance, the government-sponsored enterprise announced Thursday.
Included in the sale is one smaller pool aimed at spurring participation by nonprofits and minority- and women-owned businesses. In total, Fannie Mae plans to sell nearly 4,000 loans.
The two larger pools comprise around $777 million in UPB. Bids for these two pools are due August 12, and the bids will be awarded in mid-August with the sale expected to close in late September.
The Community Impact Pool, which is the smaller pool designed for nonprofits and minority- and women-owned businesses, only involves 75 loans focused in the Tampa, Fla.-area. Bids for these loans that total $11 million in UPB are due August 25, with bids expected to be awarded later that month. The sale for the smaller pool is expected to close in late October.
The new owners of the loans are expected to offer mortgage modifications to borrowers, per the terms of Fannie Mae's NPL transactions.
The loan sales are designed to help borrowers avoid foreclosure and reduce the number of seriously delinquent loans in Fannie Mae's portfolio, according to the GSE's senior vice president for credit portfolio management Joy Cianci.
"We hope to inspire opportunities for non-profit organizations, smaller investors, minority- and women-owned businesses and community groups to work together to help more borrowers avoid foreclosure and collaborate on neighborhood stabilization efforts," Cianci. She also noted that Fannie Mae held a training forum for diverse stakeholders in an effort to get a feel for future participation in NPL sales.
Wells Fargo Securities, Credit Suisse Securities and the Williams Capital Group acted as advisors to the NPL sales.
