Fannie Mae Announces Sale of Non-Performing Loans
Rhea-AI Summary
Fannie Mae (OTCQB: FNMA) has announced a new sale of non-performing loans, including two larger pools totaling approximately 1,119 deeply delinquent loans worth $198.6 million in unpaid principal balance (UPB), and a Community Impact Pool (CIP) of about 40 loans valued at $7.2 million UPB located in Florida.
The sale, marketed with BofA Securities and First Financial Network, requires bids by May 15, 2025 for the larger pools and May 27, 2025 for the CIP. Buyers must follow strict terms, including offering sustainable loss mitigation options to borrowers and honoring existing loan modifications. If foreclosure is unavoidable, properties must first be marketed to owner-occupants and non-profits before investors, similar to Fannie Mae's FirstLook® program.
Positive
- Strategic reduction of retained mortgage portfolio through sale of non-performing loans
- Implementation of borrower-friendly loss mitigation requirements for buyers
- Partnership with major financial institutions (BofA Securities and First Financial Network) for marketing
Negative
- Portfolio contains 1,159 deeply delinquent loans indicating significant default exposure
- $205.8 million in non-performing loans requiring disposition
News Market Reaction – FNMA
In the trading session that priced this news, FNMA gained 2.12%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
The two larger pools include approximately 1,119 deeply delinquent loans totaling
Bids are due on the two larger pools by May 15, 2025, and on the CIP by May 27, 2025.
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 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.
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SOURCE Fannie Mae