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Non-Performing GSE Loans Totaled $29B as of Year-End

The Federal Housing Finance Agency (FHFA) has released its latest report on the sale of non-performing loans (NPLs) by Government Sponsored Enterprises Fannie Mae and Freddie Mac (the GSEs). 

The latest edition of the Enterprise Non-Performing Loan Sales Report includes sales information on all NPLs sold through the end of 2021. However, borrower outcomes reflect NPLs sold through June 30, 2021. 

The sale of these loans reduces the number of delinquent loans in the GSEs portfolio which transfers risk to the private sector. The FHFA and the GSEs impose requirements on NPL buyers designed to achieve more favorable outcomes for borrowers than foreclosure. 

All-in-all, the GSEs sold off 154,927 NPLs with a total balance of $28.7 billion from the beginning of 2014 to the end of 2021. The loans designated NPLs had an average delinquency of 2.8 years and an average current loan-to-value ratio of 86%. 

Highlights from the NPL sales portion of the report include: 

Highlights from the borrower outcome portion of the report include: 

Click here [1] to view the 51-page report in its entirety.