HMC Assets has prevailed in the latest auction for Fannie Mae’s fourth community impact pool of non-performing loans with a total unpaid principal balance of $18.5 million.
The portfolio HMC purchased, which it did through its Corona Asset Management XVIII fund, includes 80 loans with an average loan size of $230,845 and an average delinquency of more than three years, according to Fannie Mae’s Thursday (28 July) announcement. The purchase price was not disclosed, and this is HMC’s first acquisition of Fannie Mae non-performing loans. The community impact pools of NPLs were made specifically to attract minority- and women-owned businesses.
Fannie Mae began selling NPLs regularly in April 2015 as part of a required effort to reduce the number of delinquent loans the mortgage lending financier keeps on its books. The government-sponsored enterprise has held three prior auctions for community impact pools of NPLs. New Jersey Community Capital won each of the first three, accumulating a total of 207 loans with $42.9 million in unpaid balances.
Earlier this month, in Fannie Mae’s sixth NPL sale, an auction of facilities not specifically designed for minority- and women-owned businesses, Lone Star Funds and Neuberger Berman together bought 9,300 loans with more than $1.5 billion in outstanding principals. Specifically, Lone Star purchased 4,537 loans with $746.4 million outstanding deals while Neuberger bought 4,721 NPLs on which $759.9 million is owed. Each firm had won one previous auction.
HMC Assets, based in Redondo Beach, California, purchases distressed debt from banks, financial institutions as well as the federal government. The NPLs or re-performing loans HMC buys are then refinanced or securitised or both, according to its website.