Fannie Mae looking to shed $3.62 billion in loans from its books …

Fannie Mae is looking to sell off $3.62 billion in loans, as the government-sponsored enterprise announced Wednesday that its making approximately 8,600 non-performing loans and approximately 9,900 re-performing loans available for purchase.

The sales will be conducted separately, with multiple pools of each loan type being sold.

In the non-performing loan sale, Fannie Mae is selling four large pools, which total approximately 7,900 loans with a total unpaid principal balance of $1.29 billion.

According to Fannie Mae, Pool #1 carries approximately $157.14 million in unpaid principal balance, Pool #2 carries approximately $244.06 million in UPB, Pool #3 carries approximately $499.54 million in UPB, and Pool #4 carries approximately $394.02 million in UPB.

The loans in Pool #1 are being serviced by Bank of America, while the loans in Pools #2, #3, and #4 are serviced by Seterus.

Also included in this sale are two Community Impact Pools of loans, which are typically smaller pools of loans that are geographically focused, and marketed to encourage participation by non-profit organizations, minority- and women-owned businesses, and smaller investors.

The larger of the Community Impact pools carries an unpaid principal balance of approximately $115.2 million, and the loans in this pool are geographically diverse.

The smaller of the two Community Impact pools carries an unpaid principal balance of $14.4 million, and the loans are focused in the New York City area.

All of the loans in the Community Impact Pools are being serviced by Seterus.

Terms of Fannie Mae’s non-performing loan sales require the buyer to pursue loss mitigation options that are sustainable for the borrowers.  But, in the event that a foreclosure cannot be prevented, the owner of the loan must market the property to owner-occupants and non-profits exclusively before offering it to investors.

Bids are due on the four larger pools on November 2 and on the Community Impact Pools on November 15.

Fannie Mae also announced that it is selling off its fifth pool of re-performing loans, which are mortgages that were previously delinquent, but are current and performing with or without the use of a loan modification.

This sale consists of approximately 9,900 loans, having an unpaid principal balance of approximately $2.2 billion.

This sale is also being conducted in four pools. Pool #1 is approximately $609.5 million in UPB, Pool #2 is approximately $442.3 million in UPB, Pool 3 is approximately $608.4 million in UPB, and Pool 4 is approximately $554.3 million in UPB.

All of the loans in this sale are being serviced by Seterus.

The terms of Fannie Mae’s re-performing loan sales require the buyer to offer loss mitigation options designed to be sustainable to any borrower who may re-default within five years following the loan sale.

Additionally, buyers must report on loss mitigation outcomes. Any reporting requirements cease once a loan has been current for twelve consecutive months after the closing of the sale.


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