Fannie Mae Announces Winners of its Latest Non-Performing Loan Sale

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) has announced the successful completion of its twenty-seventh non-performing loan sale transaction. The deal involves 1,304 deeply delinquent loans with a total unpaid principal balance of $285 million, divided into two pools.

Pool 1, awarded to Residential Credit Opportunities Trust X-C, consists of 332 loans worth $73.1 million, while Pool 2, won by RCF II Loan Acquisition, LP, comprises 972 loans valued at $212 million. The transaction, marketed through BofA Securities, Inc., is set to close on September 19, 2025.

Purchasers must maintain existing loss mitigation efforts and offer various options to delinquent borrowers before considering foreclosure. They must also prioritize marketing foreclosed properties to owner-occupants and non-profits before investors.

Positive

• Strategic disposal of $285 million in non-performing loans improves balance sheet quality
• Competitive bidding demonstrated by high cover bids (99.66% and 99.82% of UPB)
• Strong buyer protection requirements ensure responsible loan management and foreclosure prevention

Negative

• Sale of 1,304 deeply delinquent loans indicates significant default exposure in portfolio

WASHINGTON, Aug. 5, 2025 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced the results of its twenty-seventh non-performing loan sale transaction. The deal, announced on July 8, 2025, included the sale of 1,304 deeply delinquent loans totaling $285 million in unpaid principal balance (UPB), offered in two pools. The winning bidder for Pool 1 was Residential Credit Opportunities Trust X-C, and for Pool 2 was RCF II Loan Acquisition, LP. The transaction is expected to close on September 19, 2025. The deal was marketed with BofA Securities, Inc. as advisor.

The loan pools awarded in this most recent transaction include:

• Pool 1: 332 loans with an aggregate UPB of $73,092,445; average loan size of $220,158; weighted average note rate of 4.45%; and weighted average broker's price opinion (BPO) loan-to-value ratio of 49%.
• Pool 2: 972 loans with an aggregate UPB of $211,965,249; average loan size of $218,071; weighted average note rate of 4.39%; and weighted average BPO loan-to-value ratio of 50%.

The cover bid, which is the second highest bid for the pool, was 99.66% of UPB (48.51% of BPO) for Pool 1 and 99.82% of UPB (50.16% of BPO) for Pool 2.

All purchasers are required to honor any approved or in-process loss mitigation efforts at the time of sale, including loan modifications. In addition, purchasers 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 can register for ongoing 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 size of Fannie Mae's latest non-performing loan sale in 2025?

The sale includes 1,304 deeply delinquent loans with a total unpaid principal balance of $285 million, divided into two pools.

Who won the Fannie Mae non-performing loan auction in August 2025?

Residential Credit Opportunities Trust X-C won Pool 1 ($73.1M), and RCF II Loan Acquisition, LP won Pool 2 ($212M).

What are the terms for buyers in Fannie Mae's non-performing loan sale?

Buyers must honor existing loss mitigation efforts, offer loan modifications including possible principal forgiveness, and prioritize marketing foreclosed properties to owner-occupants and non-profits before investors.

What are the key metrics of Fannie Mae's non-performing loan pools?

Pool 1 has a 4.45% weighted average note rate and 49% loan-to-value ratio, while Pool 2 has a 4.39% note rate and 50% loan-to-value ratio.

When will Fannie Mae's latest non-performing loan sale close?

The transaction is expected to close on September 19, 2025.