Fannie Mae Announces Sale of Non-Performing Loans

Rhea-AI Summary

Fannie Mae (FNMA) announces the sale of non-performing loans, including the twenty-fourth Community Impact Pool, to reduce its retained mortgage portfolio. The sale includes a large pool of 1,205 loans totaling $221.9 million and a CIP with 52 loans totaling $14.5 million. The CIP focuses on loans in the New York area and aims to encourage participation from non-profits, MWOBs, and smaller investors. Bids are due by May 2 and May 16, 2024, for the large pool and CIP, respectively.

NPL 2024-2 Includes the Company's Twenty-Fourth Community Impact Pool Offering

WASHINGTON, April 9, 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-fourth 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 1,205 deeply delinquent loans totaling $221.9 million in unpaid principal balance (UPB), and the CIP includes approximately 52 deeply delinquent loans totaling $14.5 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., a woman-owned and -controlled business, as advisors.

Bids are due on the one large pool by May 2, 2024, and on the CIP by May 16, 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's ticker symbol?

Fannie Mae's ticker symbol is FNMA.

What is the purpose of Fannie Mae's sale of non-performing loans?

Fannie Mae is selling non-performing loans to reduce the size of its retained mortgage portfolio.

How many loans are included in the large pool of non-performing loans?

The large pool consists of 1,205 loans totaling $221.9 million.

What is the total unpaid principal balance of the loans in the Community Impact Pool (CIP)?

The CIP includes 52 loans totaling $14.5 million in unpaid principal balance.

Where are the loans in the CIP geographically located?

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