Tag Archives: Deeply Delinquent Loans

The U.S. serious delinquency rate is expected to quadruple in 2021, researchers say. If that becomes reality, millions of homeowners could be at risk without additional government programs and support.

A recent report from CoreLogic further examines the refinance option for outstanding first mortgages in the CoreLogic servicer-contributed database.

Housing advocates have been calling for government agencies to sell more non-performing mortgage loans to non-profits. With the announcement of Fannie Mae's latest non-performing loan (NPL) auction, they are partially getting their wish.

Lawmakers and activists that have been calling for Fannie Mae, Freddie Mac, and HUD to sell their non-performing mortgage loans to non-profits saw their wish come true on Thursday.

Less than a week following a nationwide wave of protests from advocacy groups on the sales of non-performing loans by government agencies to investors and private equity firms rather than non-profits, Fannie Mae announced the winners in its latest NPL auction.

Both GSEs have made a substantial push in the last year to follow the directive of their conservator, the Federal Housing Finance Agency, to excise NPLs and deeply delinquent loans from their residential mortgage portfolios.

The latest non-performing loan sale, Fannie Mae's fourth overall, will include a smaller Community Impact Pool.

The loans are three years delinquent on average and approximately one-third of them have previously been modified and subsequently became delinquent.

Fannie Mae announced the winners in its third NPL sale on Tuesday, and on Monday Freddie Mac announced its eighth NPL transaction of 2015. Both transactions total approximately $1.2 billion in unpaid principal balance (UPB).

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.