Goldman Sachs subsidiary buys massive non-performing loan portfolio from Fannie Mae

So, they’re going to feed the chicks to the fox?! Figures. Look, we all should be screaming about this and individual states should not be so lazy. Make Fannie turn over delinquent loans to the state where the land resides. Give the states the opportunity to renegotiate with their citizens and collect the monthly payments or foreclose and make the funds the banks are getting from a free house. It as close as they’ll ever come to replenishing the pension funds they gambled away!

But giving away the properties to Goldman Sachs who helped orchestrate the demise of the economy is absolutely ridiculous.

Justice League

Fannie Mae announced Wednesday that it selected the winning bidders in its latest sale of non-performing loans, with a subsidiary of one of Wall Street’s biggest names among the winning bidders.

The total sale included four pools of loans that total $1.32 billion in unpaid principal balance spread across 6,540 loans.

The winning bidder for two of those pools, representing 2,068 loans that carry an unpaid principal balance of $418,414,683, was MTGLQ Investors, L.P., a “significant subsidiary” of Goldman Sachs.

According to the Securities and Exchange Commission, Goldman Sachs owns, directly or indirectly, at least 99% of the voting securities of MTGLQ Investors, L.P.

Read on.

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3 thoughts on “Goldman Sachs subsidiary buys massive non-performing loan portfolio from Fannie Mae

  1. Missing from the HousingWire piece is the winning bid amounts. The closest figure was:

    “According to Fannie Mae, the weighted average sale price of the combined pools was in the “mid-70’s” as a percentage of the loans’ unpaid principal balance.”

    Question: How many of the loans, had principal (and interest rates commensurate) been reduced by 25%?

    Answer: We’ll never know because that ain’t ever gonna happen.

  2. Well, one thing seems clear: the purchaser is not a holder in due course, having purchased defaulted loans. If the loans actually average 79% loan to value, seems to me FNMA sat on the non-performing loans until the real estate market gave them that 79% ltv. The ltv’s at default were probably 60% or less, I’d hazard, and probably 100% or higher when the loans were made. FNMA and now the buyer are subject to a defense of laches when asserting rights against the borrowers. (I don’t know if laches requires an assertion of damages or not).

  3. DC: “But giving away the properties to Goldman Sachs who helped orchestrate the demise of the economy is absolutely ridiculous.” Sure is!

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