Deception of the Day: Fannie Mae Announces “Winners” of its Latest Non-Performing Loan Sale

Editor’s note:  There are no “winners” when it comes to the purchase of Fannie Mae’s non-performing loans.  These loans, in the majority of cases, were never delivered to the trusts and often require the fabrication of notes and assignments to create the illusion of legitimacy.  Fannie Mae, the quasi-governmental lender, is well aware that these loans are fatally defective and yet fails to disclose this issue to new purchasers of its defective loan products.

WASHINGTON, March 14, 2017 /PRNewswire/ — Fannie Mae (OTC Bulletin Board: FNMA) today announced the winning bidders for its ninth non-performing loan sale. The sale included approximately 9,400 loans totaling $1.68 billion in unpaid principal balance (UPB), divided among four pools. The winning bidders for the transaction, expected to close on April 25, 2017, were Igloo Series II Trust (Balbec Capital LP) for pool 1 and MTGLQ Investors, L.P. (Goldman Sachs) for pools 2 through 4.

In collaboration with Bank of America Merrill Lynch and The Williams Capital Group, L.P., Fannie Mae began marketing these loans to potential bidders on February 14, 2017.

The loan pools awarded in this most recent transaction include:

  • Group 1 Pool: 1,465 loans with an aggregate unpaid principal balance of $246,748,844; average loan size $168,429; weighted average note rate 4.51%; weighted average delinquency 29 months; weighted average broker’s price opinion loan-to-value ratio of 78.75%.
  • Group 2 Pool: 3,062 loans with an aggregate unpaid principal balance of $496,205,215; average loan size $162,053; weighted average note rate 5.05%; weighted average delinquency 38 months; weighted average broker’s price opinion loan-to-value ratio of 64.81%.
  • Group 3 Pool: 2,457 loans with an aggregate unpaid principal balance of $429,254,601; average loan size $174,707; weighted average note rate 4.90%; weighted average delinquency 39 months; weighted average broker’s price opinion loan-to-value ratio of 79.61%.
  • Group 4 Pool: 2,427 loans with an aggregate unpaid principal balance of $512,628,430; average loan size $211,219; weighted average note rate 4.68%; weighted average delinquency 42 months; weighted average broker’s price opinion loan-to-value ratio of 129.55%.

The cover bid, which is the second highest bid, for Pool 1 is 73.2% of UPB (57.7% of Broker Price Opinion – BPO), for Pool 2 is 88.5% UPB (57.4% BPO), for Pool 3 is 73.2% UPB (58.3% BPO) and for Pool 4 is 51.3% UPB (66.5% BPO).

Bids are due on Fannie Mae’s sixth Community Impact Pool on March 21, 2017.

On April 14, 2016, the Federal Housing Finance Agency announced additional enhancements to its requirements for sales of non-performing loans by Fannie Mae and Freddie Mac that build on the requirements originally announced in March 2015. The additional requirements, which apply to this Fannie Mae non-performing loan sale, encourage sustainable modifications that have the potential to provide more borrowers the opportunity for home retention by requiring evaluation of underwater borrowers for modifications that may include principal and/or arrearage forgiveness; forbidding “walking away” from vacant homes; and establishing more specific proprietary loan modification standards.

Potential buyers can register for ongoing announcements or training, and find more information on Fannie Mae’s sales of non-performing loans and on the Federal Housing Finance Agency’s guidelines for these sales, at

Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit and follow us on

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13 Responses

  1. I can be reached here should bring up contact form or copy to browser

  2. hammertime — if you want to share. Provide contact info

  3. I’m in CA, non judicial. Working with interesting NJ case. Not a lawyer. Research and share information working on group approach.

  4. 6098681171

  5. Hammertime – where are you?

  6. Larry. Please google the OCC remediation framework from June 2012. The Office of the comptroller of currency regulates the banks and the federal reserve. They have a remediation chart with all the wrongful foreclosure acts and what the remedies are. I just learned about this plan that banks were supposed to use to correct wrongdoing. It states monetary awards for homeowners who are in process of foreclosure proceedings andgreater awards for those whose homes have been sold. I believe judges and juries need to have this information to show that banks were given instructions to correct wrongful foreclosure proceedings but ignored the remediation plan of the OCC. of course there is a burden of proof of wrongdoing and the banks never admit wrongdoing even under a stack of documents. They lie up until the award of millions by the court. They are still in business!!

  7. There must be a trend not to buy any foreclosed homes in the USA as plenty of them may be illegally foreclosed. Government could change after a term and so are the laws too to make them to loose these bought foreclosed homes. These days anything could happen in this crazy world of many fake things.

  8. NJ

  9. Amazing case and depressing. Some of us are looking at group approach to court, agency abuses which is also taking place at every stage which should include post fc, eviction. What state?

  10. I went to court on a matter of leading me to not pay my mortgage . The Federal judge threw out so many of the charges and left only 2 Because there were limitations to the fraud wins… My case was limited to only 2 times my monetary losses. which was 2800. IF i won the other side had a right to counter sue me back and i would have paid them their legal fees. What a joke!

    I didnt want to settle. I knew i had them My wife got scared and so i settled for a measly 20,000K… I live that nightmare everyday… We are able to stay around and listen to the jury’s decision anyway. They were going to award us everything. They felt my case was worth all my past legal fees which totally $40k plus over 7 years. at $750 every month… Plus even more… However because of the limitations the judge put on my case it would nt have mattered…

    I found out a lot in that case though. Such as they never even tried to modify my case.. They fast tracked me. I was told to stop paying my mortgage in Feb and June they put me into foreclosure. When everyone else was sitting in their homes for years without even a process serve I was thrown into foreclosure even before I was determined for a modification… I had to pay them 2400 to get a modification too and i got a letter from them… I was never late not even 1 day ever…

    Im not sure if i can reopen the case with other charges or not. I want to look into but not sure if i have the energy. We forced them into a modification but they did nothing… My interest rate is 6% which is what it was orig… All they did was throw all the back money extended the loan to 40 years. But I really think i could take them in again just dont know if i have the energy…

    That case was my life for all those years and i sold out to a settlement.. Id love to rip them open some way…

  11. Good point Larry. Its a joke even with few that contest the documents pretender lenders and their lawyer debt collectors submit. This is after settlements, fake modifications etc. The fraud goes way beyond origination, securitization.

  12. I work in real estate. I have on 3 different occasions now sold foreclosed homes to people. They took months to close because they went to contract and apparently did not have proper paperwork to sign over the deeds. They had to go to court… and because the owners were already foreclosed upon nobody contested the paperwork. So the courts approved the papers and the transfer of property happened.

    My point here its happening even after the sale. They know nobody is there to contest after the fact because the homeowner has moved on…

  13. These are the specific issues we need to focus on. Currently fake news is trying to make this strictly and investor and even Obamacare issue.

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