Fannie Mae Announces Winners of its Latest Non-Performing Loan Sale
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.
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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
Details
News Market Reaction – FNMA
The recorded move for FNMA in the trading session of this news was -2.36%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
The loan pools awarded in this most recent transaction include:
- Pool 1: 335 loans with an aggregate UPB of
$60,434,423 $180,401 4.37% ; and weighted average broker's price opinion (BPO) loan-to-value ratio of41% . - Pool 2: 742 loans with an aggregate UPB of
$132,756,831 $178,912 4.42% ; and weighted average BPO loan-to-value ratio of41% .
The cover bid, which is the second highest bid for the pool, was
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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