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

WASHINGTON, April 22, 2025 /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-sixth Community Impact Pool (CIP).

The two larger pools include approximately 1,119 deeply delinquent loans totaling $198.6 million in unpaid principal balance (UPB), and the CIP includes approximately 40 loans totaling $7.2 million in UPB. The CIP consists of loans geographically located in the Florida 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.

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

FAQ

What is the total value of non-performing loans being sold by FNMA in April 2025?

Fannie Mae is selling non-performing loans with a total unpaid principal balance of $205.8 million, comprising two larger pools ($198.6 million) and a Community Impact Pool ($7.2 million).

When are the bid deadlines for FNMA's non-performing loan pools in 2025?

Bids are due on May 15, 2025 for the two larger pools and May 27, 2025 for the Community Impact Pool.

What requirements must buyers meet in FNMA's non-performing loan sale?

Buyers must offer sustainable loss mitigation options, honor existing loan modifications, and follow a waterfall of options before foreclosure. They must also market foreclosed properties to owner-occupants and non-profits before investors.

How many loans are included in FNMA's Florida Community Impact Pool?

The Community Impact Pool includes approximately 40 loans totaling $7.2 million in unpaid principal balance, located in the Florida area.