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» VISIT US ONLINE @ DSNEWS.COM 81 In January 2010, there were 54,000 home- less families nationwide, including 123,000 children; the Opening Doors program has reduced that number by 19 percent in the last six years. In some pockets of the country, how- ever, the rental affordability crisis has resulted in an increase in homelessness among families, according to HUD. With the work that has been done in the last six years since Opening Doors was launched, HUD knows more about how to end homelessness than at any time in the na- tion's history. "We also know that bipartisan support for proven investments is enabling communities across the country to end homelessness among veterans," HUD said in the announcement. "When we commit together to investing in what works, we can achieve bold goals. at is why President Obama is calling for an historic investment of $11 billion over the next 10 years in community-based, cost-effective strategies that we know work. at investment will help us achieve our goal by 2020 and maintain that achievement." HUD stated that its recent Family Option Study showed that direct access to affordable housing will be the fastest way to end home- lessness among families and children and will improve their economic and social well-being at the same time. By supporting those strategies, President Obama's FY2017 budget proposal will end homelessness with some 550,000 families and will enable communities across the country to end homelessness by 2020. Fannie Mae's Largest Non-Performing Loan Sale Ever: The Winners Are. . . Less than a week following a nationwide wave of protests from advocacy groups on the sales of non-performing loans (NPLs) by HUD, Fannie Mae, and Freddie Mac to investors and private equity firms rather than non-profits, Fannie Mae announced the win- ners in its latest NPL auction—and none of the winning bidders were non-profits. e NPL sale, which was Fannie Mae's fourth ever, included approximately 6,500 deeply delinquent residential mortgage loans totaling $1.32 billion in aggregate unpaid prin- cipal balance (UPB). e loans included were an average of close to six years delinquent. e loans were auctioned off in four pools. e winners were Canyon Partners (Carlsbad Funding Mortgage Loan Acquisition) for the first pool, Pretium Mortgage Credit Partners 1 Loan Acquisition for the second pool, and Goldman Sachs for the third and fourth pools. Goldman Sachs was also a winning bidder for one of the pools in Fannie Mae's previous NPL sale in October 2015. e sale just announced was Fannie Mae's largest NPL sale ever in terms of both the number of loans and the amount of UPB. e transaction is expected to close on March 28. "We are committed to reducing Fannie Mae's holdings of non-performing loans in a responsible way," said Joy Cianci, Senior Vice President, Credit Portfolio Management, Fannie Mae. "We continue to work with struggling homeowners to prevent foreclosures whenever we can. is sale of seriously delin- quent loans can create additional opportunities for borrowers to avoid foreclosure while reduc- ing the impact of these loans for Fannie Mae and the taxpayers." A breakdown of the four pools sold in Fannie Mae's latest NPL auction is as follows: » Pool #1: 3,127 loans with an aggregate UPB of $637,451,715; average loan size $203,891; weighted average note rate 5.70%; average delinquency 59 months; weighted average broker's price opinion loan-to-value ratio of 79% » Pool #2: 1,345 loans with a UPB of $266,947,532; average loan size $199,151; weighted average note rate 5.58%; average delinquency 58 months; weighted average broker's price opinion loan-to-value ratio of 74% » Pool #3: 1,176 loans with a UPB of $233,559,463; average loan size $198,712; weighted average note rate 5.59%; average delinquency 59 months; weighted average broker's price opinion loan-to-value ratio of 79% » Pool #4: 892 loans with a UPB of $184,855,220; average loan size $207,217; weighted average note rate 5.65% At the same time Fannie Mae began marketing these four pools for sale, the GSE also began marketing a Community Impact Pool—a smaller pool of geographically- concentrated loans specifically structured to attract participation from non-profits, small investors, and minority- and women-owned businesses. Bids are due for the Community Impact Pool on February 18. It will be Fannie Mae's second Community Impact Pool trans- action; the first was in July 2015. While the advocacy groups and prominent lawmakers such as Sen. Elizabeth Warren (D- Massachusetts) call for these deeply delinquent loans to be sold to non-profits whom they believe will be more effective at preventing foreclosures and stabilizing neighborhoods, Fannie Mae's conservator, FHFA, updated its non-performing loan sale guidelines in March 2015 and now requires all winning bidders to apply a "waterfall of resolution tactics" before resorting to foreclosure. A recap of Fannie Mae's three previous NPL sales: » October 2015—7,000 loans, three pools, $1.24 billion in UPB; winning bidders were Fortress (New Residential Investment Corp.) for the first and third pools and Goldman Sachs for the second pool » July 2015—3,900 loans, two pools, $765 million in UPB; both pools were won by Lone Star (LSF9 Mortgage Holdings). In addition to these two pools, Fannie Mae conducted a Community Impact Pool auction that included 71 loans in Florida totaling $10 million in UPB. e winning bidder was a non-profit, New Jersey Com- munity Capital. » April 2015—3,000 loans, two pools, $762 million in UPB; winning bidders were SW Sponsor for the first pool and Neuberger Berman Fixed Income Funds' affiliate PRMF Acquisition for the second pool. » Totals (including the sale just an- nounced)—20,471 loans, $4.1 billion in UPB Washington, D.C. had a lower number of completed foreclosures than any of the 50 states for the full year of 2015 with 81; the state with the lowest number of completed foreclosures during that period was North Dakota with 220, according to CoreLogic. KNOW THIS

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