Fannie Mae announces latest sale of non-performing loans
Includes Community Impact Pool
April 12, 2016, 6:02 pm By Kelsey Ramírez
Fannie Mae announced the sale of its latest sale of non-performing loans, including the third Community Impact Pool that it has offered.
The Community Impact Pool program consists of smaller pools of non-performing loans and is designed to attract diverse participation by nonprofits, small investors and minority- and women-owned businesses.
The four larger pools of about 8,200 loans, totaling $1.527 billion in unpaid principal balance, as well as the Community Impact Pool of about 80 loans in the Miami, Florida, area, totaling about $80 million in unpaid principal balance, are available for purchase by qualified buyers.
Bank of America Merrill Lynch, First Financial Network and Castle Oaks Securities serve as advisors for the marketing of the sale of these non-performing loans.
"The non-performing loans that are included in today's sale announcement have been previously solicited for loss mitigation opportunities by Fannie Mae servicers, but they unfortunately remain seriously delinquent," said Joy Cianci, Fannie Mae senior vice president for Single Family Credit Portfolio Management. "We believe other investors will offer additional opportunities for these borrowers to avoid foreclosure."
"We are also pleased to build on the success of our Community Impact Pool sales," Cianci said. "Selling severely delinquent loans can benefit communities and reduce risk for taxpayers. We will continue to structure pool sales to encourage participation from nonprofits and minority- and women-owned businesses."
In both 2015 and 2016, New Jersey Community Capital, a nonprofit, bought Fannie Mae's non-performing loans.
Bids are due on the four larger pools on May 5 and on May 19 for the Community Impact Pool.