The Community Loan Fund of New Jersey Inc., an affiliate of New Jersey Community Capital, a nonprofit community development financial institution, is the winning bidder on a pool of 120 nonperforming loans (NPLs) recently auctioned by Fannie Mae.
It was the fifth Community Impact Pool of NPLs auctioned by the government-sponsored enterprise so far this year. Entities that acquire these delinquent loans are required to, in certain circumstances, provide borrowers with loss mitigation options, including loan modifications and principal forgiveness. The goal is to get the loans performing again and keep the borrowers in their homes.
Most of the properties securing the loans are located in the Miami area, Fannie Mae says in a release. The pool has a total unpaid principal balance (UPB) of approximately $20.3 million. The average loan size is $169,003. The weighted average note rate is 5.23%. The weighted average delinquency duration is 42 months. The weighted average broker’s price opinion (BPO) loan-to-value ratio is 111.0%.
The transaction, which is being completed in collaboration with Wells Fargo Securities and The Williams Capital Group, is expected to close on Nov. 22.
The cover bid price for the pool is 56.6% of UPB, or 52.4% of BPO.