Fannie Mae has chosen the winning bidder for its inaugural nonperforming loan sale of 2022, a deal involving 3,223 loans with an unpaid principal balance of $477.2 million that was divided into two separate pools.
The top bidder is MCLP Asset Co., which is registered as a debt-collection agency with the city of New York’s Department of Consumer Affairs and lists its address as being a Manhattan property that also is home to Goldman Sachs’ headquarters — 200 West Street in 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 divided into two pools, with MCLP the winning bidder for both pools. Pool 1 consisted of 1,635 loans valued at $250.3 million, with an average loan size of $153,097 and an average mortgage note rate of 4.62%. Pool 2 includes 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 advisors for the deal. The transaction, which represents Fannie Mae’s first nonperforming loans sale this year, is slated to close July 27. The deal is the nineteenth sale of nonperforming 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, however, were 94.59% of the unpaid principal balance (UPB) for Pool 1 and 101.59% of UPB for Pool 2.
A third nonperforming loan pool that is part of the package is still scheduled to be auctioned off, with bids due on June 21. That pool, dubbed the Community Impact Pool (CIP) includes 120 loans with a UPB of $36.3 million.
“CIPs are typically smaller pools of loans that are geographically focused and marketed to encourage participation by nonprofit organizations, minority- and women-owned businesses and smaller investors,” Fannie Mae state in its original announcement of the nonperforming loan sale. In this case, the CIP is composed of loans made in the New York area.
The sales of nonperforming mortgages are intended to reduce the number of seriously delinquent loans owned by Fannie Mae with the goal of helping to stabilize neighborhoods and to also meet the portfolio-reduction targets established under Fannie’s senior preferred stock purchase agreement with the U.S. Treasury.
“All purchasers [of the nonperforming loans] are required to honor any approved or in-process loss-mitigation efforts at the time of sale, including forbearance arrangements and loan modifications,” Fannie Mae states in its announcement of the loan sale. “In addition, purchasers must offer delinquent borrowers a waterfall of loss mitigation options, including loan modifications, which may include principal forgiveness, prior to initiating foreclosure on any loan.”
In a related development, earlier this month Fannie Mae unveiled its third reperforming 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 sale of reperforming loans since the inaugural offering in October 2016, which involved a pool of 3,600 reperforming loans valued at about $806 million. A reperforming loan is a mortgage that has been or is currently delinquent but has been reperforming for a period of time.