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

Rhea-AI Summary

Fannie Mae (FNMA) has announced the results of its twenty-sixth non-performing loan sale, involving 1,077 deeply delinquent loans with a total unpaid principal balance of $193 million. The sale was divided into two pools: Pool 1 with 335 loans ($60.4M UPB) won by Residential Credit Opportunities IX, LLC, and Pool 2 with 742 loans ($132.8M UPB) won by VRMTG ACQ, LLC. The transaction is set to close on July 8, 2025.

Both pools have similar characteristics, with weighted average BPO loan-to-value ratios of 41% and note rates around 4.4%. The cover bids were strong at 103.79% of UPB for Pool 1 and 104.36% for Pool 2. Purchasers must honor existing loss mitigation efforts and offer various options to delinquent borrowers before pursuing foreclosure.

Positive

• Strong cover bids above 103% of UPB indicate healthy market demand for non-performing loans
• Sale of $193M in non-performing loans helps improve Fannie Mae's balance sheet quality
• Protective measures for borrowers including mandatory loss mitigation options reduce foreclosure risks

Negative

• Large portfolio of 1,077 deeply delinquent loans indicates ongoing credit quality challenges
• Average loan-to-value ratio of 41% suggests potential losses on underlying properties

WASHINGTON, May 21, 2025 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced the results of its twenty-sixth non-performing loan sale transaction. The deal, announced on April 22, 2025, included the sale of 1,077 deeply delinquent loans totaling $193 million in unpaid principal balance (UPB), offered in two pools. The winning bidder for Pool 1 was Residential Credit Opportunities IX, LLC, and for Pool 2 was VRMTG ACQ, LLC (VWH Capital Management, LP). The transaction is expected to close on July 8, 2025. The deal was marketed with BofA Securities, Inc. as advisor.

The loan pools awarded in this most recent transaction include:

• Pool 1: 335 loans with an aggregate UPB of $60,434,423; average loan size of $180,401; weighted average note rate of 4.37%; and weighted average broker's price opinion (BPO) loan-to-value ratio of 41%.
• Pool 2: 742 loans with an aggregate UPB of $132,756,831; average loan size of $178,912; weighted average note rate of 4.42%; and weighted average BPO loan-to-value ratio of 41%.

The cover bid, which is the second highest bid for the pool, was 103.79% of UPB (42.93% of BPO) for Pool 1 and 104.36% of UPB (42.86% 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.

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 total value of Fannie Mae's (FNMA) latest non-performing loan sale?

The total unpaid principal balance (UPB) of the non-performing loan sale is $193 million, comprising 1,077 deeply delinquent loans sold in two pools.

Who won the bidding for Fannie Mae's non-performing loan pools in May 2025?

Residential Credit Opportunities IX, LLC won Pool 1 ($60.4M UPB), and VRMTG ACQ, LLC (VWH Capital Management, LP) won Pool 2 ($132.8M UPB).

What are the cover bid percentages for FNMA's non-performing loan pools?

The cover bids were 103.79% of UPB for Pool 1 and 104.36% of UPB for Pool 2, representing 42.93% and 42.86% of BPO respectively.

What requirements must purchasers follow in Fannie Mae's non-performing loan sale?

Purchasers must honor approved loss mitigation efforts, including loan modifications, and offer delinquent borrowers various loss mitigation options before initiating foreclosure.

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

The transaction is expected to close on July 8, 2025.