Wall Street Strikes Again

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Wall Street Strikes Again

28:45 · 2018

Episode 298

I thought we’d spend some time talking about the article that came out from HousingWire about Goldman Sachs striking again. It’s about Goldman Sachs getting ready to close on another large portfolio of nonperforming notes from Fannie Mae. They bought a tremendous amount of 11,000 loans, which was pretty ridiculous. The article goes on to say, “$1.64 billion in unpaid balance. Winner of the thirteenth non-performing sale of Fannie Mae is Goldman Sachs.” They announced it as a different company, MTGLQ Investors. Goldman Sachs is the company behind it. The sale includes about 9,800 loans of about $1.64 billion in UPB and it’s divided among four different pools. They’re also working with Bank of America Merrill Lynch and then a company called the Williams Capital Group to help dive for it.

The total sales are 11,000 nonperforming loans with unpaid balance of $1.84 billion. The company explained that a small portion would be sold was a Community Impact Pool. Those are smaller loan pools that are divided up geographically into different areas. It was in Cook County, New York, New Jersey, Miami and I believe Baltimore was the other area. Those are targeted toward minority on business like women-owned, Hispanic-owned and smaller investment companies. They’ve taken out a full pool, but they’re offered the smaller pools in the rougher areas to get things done.

Out of the four pools, group one is 2,300 loans, a weighted BPO loan-to-value is at 80%, average loan by net pool is $151,000. Group Two was the largest pool of the four, which is 3,182 loans. The average loan size of $150,000. Weighted average of note rate is 5.21%, 40 months from delinquency. The first pool is just 25 months of delinquency. Weighted average BPO loan-to-value ratio is 63%. Group three is 1,403 loans. UPB on average is $150,000. It’s almost exactly the same size of loans on these first two. It has 40 months of delinquency, weighted average loans of 63%. The fourth pool is 2,881 loans, $595 million is the loan balance. Average loan size of $206,000, the delinquency, 39 months of delinquency, average BPO loan-to-value ratio is 120%. The second highest bid for the pool was at 81.5% of unpaid principal balance. They were all purchased on an all-or-none basis. Whoever bought these had to take them all at the same time.


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