Fannie Mae plans to market more deeply delinquent, non-performing loans (NPLs) to non-profits, smaller investors, and minority- and women-owned businesses. According to a recent announcement from Fannie Mae, the GSE plans to sell its fourth Community Impact Pool, which is a smaller pool of geographically-focused, high occupancy loans marketed specifically for participation for the aforementioned groups.
The newest Community Impact Pool for sale contains approximately 90 loans focused in the Miami, Florida, area, totaling about 20 million dollars in unpaid principal balance. It is one of three pools of NPLs Fannie Mae is offering for sale via auction. The two larger pools contain a combined total of about 3,300 single-family residential mortgage loans with about 526 million dollars in UPB.
It appears GSE reform may actually be on the horizon—or at least discussed regularly in Washington—thanks to a new bill proposed by Congressman French Hill of Arkansas recently. The bill, called the GSE Review and Reform Act, would require the U.S Treasury Secretary to study the Federal Housing Finance Agency’s conservatorship of Fannie Mae and Freddie Mac annually, as well as the impact ending that conservatorship might have. The bill would also require the Treasury to present recommendations to Congress each year on how to progress GSE reform and move toward ending the conservatorship.