Congratulations New York Taxpayers! You Are The Proud Owner Of $36.3 Million Of Garbage Loans From Fannie Mae
Fannie Mae finalized the sale of it’s inaugural nonperforming loan sale of the year. They also announced the winning bidder for its inaugural nonperforming loan sale of 2022. This Fannie Mae’s nineteenth sale since the inaugural offering in 2015.
Fannie Mae has named the pool the “Community Impact Pool” or CIP. The pool includes 120 loans with an unpaid principal balance of $36.3 million. The average loan size in the pool is $301,412 and an average interest rate of 5.24%. The Fannie Mae pool contains loans located in the New York metropolitan area.
The winning bidder is the State of New York Mortgage Agency Community Restoration Fund (CRF). The New York State Office of Homes and Community Renewal is sponsoring CRF. The CRF acquires pools of defaulted loans to provide the homeowners with a chance to modify the loans. CRF also ensures abandoned homes are sold quickly and converted to owner-occupant buyers.
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 uses these sales to reduce the number of delinquent loans in it’s pool. The goal is also to help stabilize neighborhoods. Fannie Mae also does it to meet the portfolio-reduction targets established under Fannie’s bail out agreement with the US Treasury.