Fannie Mae Sells $203 Million Non-Performing Loan Portfolio
Residential Credit Opportunities Trust IX-D has emerged as the winning bidder for a portfolio of 919 non-performing loans, marking the twenty-eighth such transaction for Fannie Mae. The deal, which carries an unpaid principal balance of over $203 million, is slated for completion by early November.
The sale, finalized following an August announcement, involves loans with an average size of $221,222 and a weighted average note rate of 4.31%. BofA Securities, Inc. served as the advisor for the offering. The portfolio reflects a weighted average broker's price opinion loan-to-value ratio of 48%, with the cover bid reaching 100.375% of the unpaid principal balance.
Fannie Mae mandates that the new owners adhere to strict loss mitigation protocols. Purchasers must honor existing loan modification efforts and offer delinquent borrowers a comprehensive range of alternatives, including potential principal forgiveness, before pursuing foreclosure. In instances where foreclosure is unavoidable, the property must be marketed to non-profits and owner-occupants before being made available to other investors.
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