Are Fannie & Freddie Quietly Shopping $250 Billion in Non Performing Notes?
December 4, 2009 by Andy Kaufman · View Comments
From Will Fannie and Freddie Tap the NPL Auction Market?
“There’s been lots of meetings and they’re talking to a lot of people about it,” said one veteran investment banker, requesting his name not be used because of the sensitivity of the matter, “but they’re a long way away from doing anything yet.”
One idea the two are said to be contemplating involves the securitization of NPLs. The GSEs would hire third-party vendors to gather broker price opinions on the properties collateralizing the mortgages. Fannie and Freddie might then issue a security backed by the NPLs based on the new BPO value. “If they could get 80% of the current BPO value they’d be ecstatic,” said one investment banker.
A few things:
1. 80% of BPO (Broker Price Opinion) value is a pipe dream.
2. If this DOES happen, it will put significant downward pressure on the market & for this reason alone, I’m skeptical…. but at the same time curious to see how this could be structured.
3. That’s A LOT of BPOs. (On a semi interesting, possibly related side note, we had a flood of BPO requests on Wednesday. We usually get around 5-10 a day from various servicers, but on Wednesday we had over 30.)
Fannie Mae Sends Investor REO Buyers to the Back of the Line
December 1, 2009 by Andy Kaufman · View Comments
If you’re an investor looking to purchase Fannie Mae REO properties, then their new First Look initiative will be of interest to you.
To provide owner occupants and public entities an advantage in purchasing Fannie Mae-owned foreclosed properties, the company has created the First Look initiative. With First Look, only offers from owner occupants and buyers using public funds are considered during the first 15 days a property is on the market. Offers from investors will be considered only after the first 15 days have passed.
Ready, Set, Wait 15 Days
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