Fannie Mae Announces Sale of Non-Performing Loans

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) announced the sale of non-performing loans to reduce its mortgage portfolio, including its 17th Community Impact Pool (CIP). The sale comprises approximately 8,090 loans worth $1.6 billion in unpaid principal balance (UPB) and a CIP of around 400 loans valued at $98.1 million in UPB, focused on the Miami-Dade area. Bids for the larger pools are due by June 8, 2021, and for the CIP by June 22, 2021. The transactions require buyers to consider sustainable loss mitigation options for borrowers.

Positive

• Sale includes 8,090 loans worth $1.6 billion in UPB, indicating significant asset liquidation.
• Community Impact Pool aims to engage non-profits and minority-owned businesses, fostering social responsibility.

Negative

• None.

WASHINGTON, May 13, 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 seventeenth 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 8,090 loans totaling $1.6 billion in unpaid principal balance (UPB) and the CIP of approximately 400 loans totaling $98.1 million in UPB. The CIP consists of loans geographically located in the Miami-Dade area. All pools are available for purchase by qualified bidders. This sale of non-performing loans is being marketed in collaboration with Bank of America Merrill Lynch and First Financial Network, Inc. as advisors.

Bids are due on the four larger pools on June 8, 2021 and on the CIP on June 22, 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. 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

Fannie Mae Newsroom
https://www.fanniemae.com/news

Photo of Fannie Mae
https://www.fanniemae.com/resources/img/about-fm/fm-building.tif

Fannie Mae Resource Center
1-800-2FANNIE

View original content:http://www.prnewswire.com/news-releases/fannie-mae-announces-sale-of-non-performing-loans-301290977.html

SOURCE Fannie Mae

FAQ

What is Fannie Mae's recent sale of non-performing loans about?

Fannie Mae announced the sale of non-performing loans to reduce its mortgage portfolio, including a Community Impact Pool.

What is the total value of the loans in Fannie Mae's latest sale?

The sale includes approximately $1.6 billion in unpaid principal balance for 8,090 loans.

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

Bids are due on June 8, 2021 for the larger pools and on June 22, 2021 for the Community Impact Pool.

What is the focus area for Fannie Mae's Community Impact Pool?

The Community Impact Pool consists of loans geographically located in the Miami-Dade area.

What do buyers have to consider when purchasing Fannie Mae's non-performing loans?

Buyers are required to pursue sustainable loss mitigation options for borrowers.