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Fannie Mae has announced its third sale of non-performing single-family mortgage loans (NPLs), this time in three pools totaling about $1.2 billion in unpaid principal balance (UPB).
The three pools are comprised of approximately 7,000 loans combined. The non-performing loans are deeply delinquent, meaning many of the loans are likely either in some stage of loss mitigation or foreclosure.
This NPL sale is being marketed in collaboration with Credit Suisse Securities, JPMorgan Securities, Bank of America Merrill Lynch, and the Williams Capital Group, according to Fannie Mae.
"This is our third sale of non-performing loans, meant to reduce the number of severely delinquent loans we hold and provide borrowers with additional options to avoid foreclosure," said Joy Cianci, SVP for Credit Portfolio Management at Fannie Mae. "As with previous loan sales, servicers are required to apply a range of options to help borrowers avoid foreclosure whenever possible. These actions help in stabilizing neighborhoods and reducing severely delinquent loans on our books."
"This is our third sale of non-performing loans, meant to reduce the number of severely delinquent loans we hold and provide borrowers with additional options to avoid foreclosure."
Fannie Mae's NPL transactions require the loan owner to market the property exclusively to owner-occupants and non-profits before offering it to investors when foreclosure cannot be prevented. For more information about specific pools available, on Fannie Mae's NPL sale guidelines, or to register to bid, click here.
In May, Fannie Mae closed its first-ever bulk NPL sale. That transaction included approximately 3,000 deeply delinquent residential single-family mortgage loans totaling about $762 million in UPB. Fannie Mae's second bulk NPL sale, which wrapped in mid-August, consisted of approximately 3,900 NPLs, selling for $765 million. In early September, Fannie Mae sold a smaller "Community Impact" Pool of about 75 non-performing loans with $11 million in UPB. The Community Impact Pool was specifically structured to attract bidding by non-profits, small investors, and minority- and women-owned businesses (MWOBs). The winning bidder was New Jersey Community Capital, a non-profit.
