Fannie Mae Announces Sale of Non-Performing Loans

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) announced its latest sale of non-performing loans, including its eighteenth Community Impact Pool (CIP), aimed at reducing its retained mortgage portfolio. The sale encompasses four larger pools with approximately 11,400 loans totaling $1.7 billion in unpaid principal balance (UPB) and a CIP of around 140 loans worth $45.2 million in UPB, primarily located in New York. Bids for the larger pools are due on October 5, 2021, and for the CIP on October 19, 2021. Buyers are required to pursue loss mitigation strategies for delinquent borrowers.

Positive

• Sale of approximately 11,400 loans totaling $1.7 billion in UPB reduces retained mortgage portfolio.
• CIP encourages participation from non-profit organizations and MWOBs, enhancing community involvement.

Negative

• None.

WASHINGTON, Sept. 9, 2021 /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 eighteenth 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 four larger pools include approximately 11,400 loans totaling $1.7 billion in unpaid principal balance (UPB), and the CIP contains approximately 140 loans totaling $45.2 million in UPB. The CIP consists of loans geographically located in the New York 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. as advisors.

Bids are due on the four larger pools on October 5, 2021 and on the CIP on October 19, 2021.

Among other elements, terms of Fannie Mae's non-performing loan transactions require the buyer of the non-performing loans to pursue loss mitigation options designed to be sustainable for borrowers. All purchasers are required to honor any approved or in-process loss mitigation efforts at the time of sale, including forbearance arrangements and loan modifications. In addition, purchasers 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. 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 helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of people in America. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit: fanniemae.com | Twitter | Facebook | LinkedIn | Instagram | YouTube | Blog

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SOURCE Fannie Mae

FAQ

What types of loans is Fannie Mae selling in September 2021?

Fannie Mae is selling non-performing loans, including larger pools and a Community Impact Pool (CIP).

How much is Fannie Mae's latest sale of non-performing loans worth?

The sale includes approximately $1.7 billion in unpaid principal balance for larger pools and $45.2 million for the CIP.

When are bids due for Fannie Mae's non-performing loans?

Bids for the four larger pools are due on October 5, 2021, and for the CIP on October 19, 2021.

Where are the loans in Fannie Mae's Community Impact Pool located?

The loans in the CIP are primarily located in the New York area.

What are the terms for buyers of Fannie Mae's non-performing loans?

Buyers must pursue loss mitigation options and honor existing efforts, including forbearances and modifications, before foreclosures.