Fannie Mae Announces Sale of Non-Performing Loans

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) has announced its latest sale of non-performing loans, including its 25th Community Impact Pool (CIP). The sale comprises a large pool of approximately 1,766 deeply delinquent loans totaling $296.7 million in unpaid principal balance (UPB), and a CIP of about 29 loans totaling $7.2 million in UPB, focused on the New York area. This initiative is part of Fannie Mae's ongoing effort to reduce its retained mortgage portfolio size.

The sale, marketed in collaboration with BofA Securities, Inc. and First Financial Network, Inc., requires buyers to offer sustainable loss mitigation options to borrowers. Bids are due on October 3, 2024, for the large pool and October 17, 2024, for the CIP. The terms include honoring existing loss mitigation efforts and offering a waterfall of options before initiating foreclosure.

Positive

• Reduction of retained mortgage portfolio size
• Promotion of participation by non-profit organizations and minority- and women-owned businesses
• Requirements for buyers to offer sustainable loss mitigation options to borrowers

Negative

• Large volume of non-performing loans ($296.7 million in the main pool)

2024-NPL3 Includes the Company's Twenty-Fifth Community Impact Pool Offering

WASHINGTON, Sept. 10, 2024 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced its latest sale of non-performing loans as part of the company's ongoing effort to reduce the size of its retained mortgage portfolio, including the company's twenty-fifth Community Impact Pool (CIP). CIPs are typically smaller pools of loans that are geographically focused and marketed to encourage participation by non-profit organizations, minority- and women-owned businesses (MWOBs), and smaller investors.

The one large pool includes approximately 1,766 deeply delinquent loans totaling $296.7 million in unpaid principal balance (UPB), and the CIP includes approximately 29 loans totaling $7.2 million in UPB. The CIP consists of loans geographically located in the New York area. All pools are available for purchase by qualified bidders. This sale of non-performing loans is being marketed in collaboration with BofA Securities, Inc. and First Financial Network, Inc., a woman-owned and -controlled business, as advisors.

Bids are due on the one large pool by October 3, 2024, and on the CIP by October 17, 2024.

Terms of Fannie Mae's non-performing loan transactions require the buyer of the non-performing loans to offer loss mitigation options designed to be sustainable for borrowers. All buyers of non-performing loans are required to honor any approved or in-process loss mitigation efforts at the time of closing, including forbearance arrangements and loan modifications. In addition, non-performing loan buyers must offer delinquent borrowers a waterfall of loss mitigation options, including loan modifications, which may include principal forgiveness, prior to initiating foreclosure on any loan, not secured by property which is vacant or condemned at the time of closing. In the event a foreclosure cannot be prevented, the owner of the loan must market the property to owner-occupants and non-profits before offering it to investors, similar to Fannie Mae's FirstLook^® program.

Interested bidders are invited to register for future announcements, training and other information here. Fannie Mae will also post information about specific pools available for purchase on that page.

About Fannie Mae
Fannie Mae advances equitable and sustainable access to homeownership and quality, affordable rental housing for millions of people across America. We enable the 30-year fixed-rate mortgage and drive responsible innovation to make homebuying and renting easier, fairer, and more accessible. To learn more, visit:
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SOURCE Fannie Mae

FAQ

What is the total value of non-performing loans Fannie Mae (FNMA) is selling in this announcement?

Fannie Mae is selling non-performing loans totaling approximately $303.9 million in unpaid principal balance (UPB), comprising a large pool of $296.7 million and a Community Impact Pool of $7.2 million.

When are the bids due for Fannie Mae's (FNMA) non-performing loan sale announced on September 10, 2024?

Bids are due on October 3, 2024, for the large pool of non-performing loans, and on October 17, 2024, for the Community Impact Pool (CIP).

What requirements does Fannie Mae (FNMA) impose on buyers of its non-performing loans?

Buyers must offer sustainable loss mitigation options to borrowers, honor existing loss mitigation efforts, offer a waterfall of options before foreclosure, and market foreclosed properties to owner-occupants and non-profits before investors.

How many loans are included in Fannie Mae's (FNMA) Community Impact Pool announced on September 10, 2024?

The Community Impact Pool (CIP) announced by Fannie Mae includes approximately 29 loans totaling $7.2 million in unpaid principal balance (UPB).