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 1,352 deeply delinquent loans worth $288.8 million in unpaid principal balance (UPB) and a Community Impact Pool (CIP) of 32 loans worth $8.1 million UPB focused on the Florida area.

The sale, marketed with BofA Securities and First Financial Network, requires buyers to offer sustainable loss mitigation options to borrowers, including loan modifications and possible principal forgiveness. Bids are due by July 30, 2025 for the larger pools and August 11, 2025 for the CIP. The initiative is part of Fannie Mae's strategy to reduce its retained mortgage portfolio size.

Positive

• Strategic reduction of retained mortgage portfolio through sale of non-performing loans
• Structured loss mitigation requirements protect borrowers from immediate foreclosure
• Partnership with major financial institutions (BofA Securities and First Financial Network) for marketing

Negative

• Portfolio contains $296.9 million in deeply delinquent loans requiring disposition
• Potential foreclosure risks for properties not qualifying for loss mitigation

News Market Reaction – FNMA

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-0.22% Session move

In the trading session that priced this news, FNMA declined 0.22%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

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WASHINGTON, July 8, 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-seventh Community Impact Pool (CIP).

The two larger pools include approximately 1,352 deeply delinquent loans totaling $288.8 million in unpaid principal balance (UPB), and the CIP includes approximately 32 loans totaling $8.1 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 July 30, 2025, and on the CIP by August 11, 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 Fannie Mae is selling in July 2025?

Fannie Mae is selling non-performing loans with a total unpaid principal balance of $296.9 million, comprising two larger pools ($288.8 million) and a Community Impact Pool ($8.1 million).

When are the bids due for Fannie Mae's non-performing loan pools?

Bids are due on July 30, 2025 for the two larger pools and August 11, 2025 for the Community Impact Pool.

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

Buyers must offer sustainable loss mitigation options to borrowers, honor existing loan modifications, and explore options including principal forgiveness before initiating foreclosure. They must also market foreclosed properties to owner-occupants and non-profits first.

How many loans are included in Fannie Mae's July 2025 non-performing loan sale?

The sale includes 1,384 total loans, with 1,352 loans in two larger pools and 32 loans in the Community Impact Pool focused on Florida.

What is Fannie Mae's Community Impact Pool (CIP) in this loan sale?

The Community Impact Pool is a smaller pool of 32 loans worth $8.1 million in unpaid principal balance, specifically focused on the Florida area.