Fannie Mae [1] is now accepting bids for five pools of non-performing loans [2]—one is the company’s sixth Community Impact Pool and the other four are larger pools that total about 10,000 loans. This is the latest attempt by the GSE to cast off delinquent mortgage loans.
The larger pools of loans total about $1.76 billion in unpaid principal balance. The Community Impact Pool loans have a smaller balance, are more geographically-focused, and are marketed toward non-profit organizations, small investors, and minority- and women-owned businesses.
“We are offering these non-performing loans and this community impact pool to diverse investors in an attempt to expand the opportunities available to borrowers who are significantly delinquent on their mortgage to avoid foreclosure,” said Joy Cianci, SVP for Single-Family, Special, and Distressed Assets at Fannie Mae.
In keeping with this goal, buyers of Fannie Mae’s non-performing loans must first attempt to prevent foreclosure by offering loss mitigation options to borrowers. If foreclosures are unavoidable, buyers must attempt to market the property to non-profits and owner-occupants before seeking investment interest.
Fannie Mae is selling the loans in partnership with Bank of America Merrill Lynch and The Williams Capital Group, L.P. Bids on the four large pools are due March 7, while bids on the Community Impact Pool are due on March 21.
To learn more about the available pools for sale, or to get future sale announcements, training, and more details on Fannie Mae’s loan pools, visit FannieMae.com [3].