WASHINGTON– Fannie Mae has announced its latest sale of non-performing loans as part of what it said is its ongoing effort to reduce the size of its retained mortgage portfolio, including the company’s 26th Community Impact Pool (CIP).
Fannie Mae said the two larger pools include approximately 1,119 deeply delinquent loans totaling $198.6 million in unpaid principal balance (UPB), and the CIP includes approximately 40 loans totaling $7.2 million in UPB. The CIP consists of loans geographically located in the Florida area, Fannie added.
All pools are available for purchase by qualified bidders. This sale of non-performing loans is being marketed in collaboration with BofA Securities, Inc. and First Financial Network, Inc.
Bids are due on the two larger pools by May 15, 2025, and on the CIP by May 27, 2025.
The Terms
According to Fannie Mae, terms of its non-performing loan transactions require the buyer of the non-performing loans to offer loss mitigation options designed to be sustainable for borrowers.
Additional Info
In addition:
- All buyers of non-performing loans are required to honor any approved or in-process loss mitigation efforts at the time of closing, including loan modifications.
- Non-performing loan buyers must offer delinquent borrowers a waterfall of loss mitigation options, including loan modifications, which may include principal forgiveness, prior to initiating foreclosure on any loan, not secured by property which is vacant or condemned at the time of closing.
- In the event a foreclosure cannot be prevented, the owner of the loan must market the property to owner-occupants and non-profits before offering it to investors, similar to Fannie Mae’s FirstLook program.
