Fannie Mae Announces Sale of Non-Performing Loans

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Fannie Mae announces the sale of non-performing loans, including the twenty-third Community Impact Pool, aimed at reducing the size of its retained mortgage portfolio. The large pool includes 1,689 loans totaling $247.3 million in UPB, and the CIP includes 38 loans totaling $10.5 million in UPB, geographically located in the New York/New Jersey area. The sale is being marketed in collaboration with BofA Securities, Inc. and First Financial Network, Inc. Buyers are required to offer sustainable loss mitigation options for borrowers, honor any approved or in-process loss mitigation efforts, and offer a waterfall of loss mitigation options before initiating foreclosure.

NPL 2024-1 Includes the Company's Twenty-Third Community Impact Pool Offering

WASHINGTON, Feb. 8, 2024 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced its latest sale of non-performing loans as part of the company's ongoing effort to reduce the size of its retained mortgage portfolio, including the company's twenty-third Community Impact Pool (CIP). CIPs are typically smaller pools of loans that are geographically focused and marketed to encourage participation by non-profit organizations, minority- and women-owned businesses (MWOBs), and smaller investors.

The one large pool includes approximately 1,689 loans totaling $247.3 million in unpaid principal balance (UPB), and the CIP includes approximately 38 loans totaling $10.5 million in UPB. The CIP consists of loans geographically located in the New York/New Jersey area. 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., a woman-owned and -controlled business, as advisors.

Bids are due on the one large pool by March 5, 2024, and on the CIP by March 19, 2024.

Terms of Fannie Mae's non-performing loan transactions require the buyer of the non-performing loans to offer loss mitigation options designed to be sustainable for borrowers. All buyers of non-performing loans are required to honor any approved or in-process loss mitigation efforts at the time of closing, including forbearance arrangements and loan modifications. In addition, 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.

Interested bidders are invited to register for future announcements, training and other information here. Fannie Mae will also post information about specific pools available for purchase on that page.

About Fannie Mae
Fannie Mae advances equitable and sustainable access to homeownership and quality, affordable rental housing for millions of people across America. We enable the 30-year fixed-rate mortgage and drive responsible innovation to make homebuying and renting easier, fairer, and more accessible. To learn more, visit:
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SOURCE Fannie Mae

FAQ

What is Fannie Mae announcing regarding non-performing loans?

Fannie Mae is announcing its latest sale of non-performing loans, including the twenty-third Community Impact Pool, as part of its effort to reduce the size of its retained mortgage portfolio.

How many loans are included in the large pool and the Community Impact Pool?

The large pool includes 1,689 loans totaling $247.3 million in UPB, and the CIP includes 38 loans totaling $10.5 million in UPB.

What are the requirements for buyers of non-performing loans?

Buyers are required to offer sustainable loss mitigation options for borrowers, honor any approved or in-process loss mitigation efforts, and offer a waterfall of loss mitigation options before initiating foreclosure.

Who is collaborating with Fannie Mae in marketing the sale of non-performing loans?

The sale is being marketed in collaboration with BofA Securities, Inc. and First Financial Network, Inc.

When are the bids due for the large pool and the Community Impact Pool?

Bids for the large pool are due by March 5, 2024, and bids for the CIP are due by March 19, 2024.