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 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.
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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