WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) recently revealed its latest disposal of non-performing loans, as it continues to downsize its retained mortgage portfolio. This sale includes the twenty-fourth Community Impact Pool (CIP), which is a smaller, geographically targeted pool designed to promote the participation of non-profit organizations, minority- and women-owned businesses, and smaller investors.
The sale features a large pool comprised of about 1,205 deeply delinquent loans with a total unpaid principal balance (UPB) of $221.9 million. Additionally, the CIP consists of around 52 deeply delinquent loans, concentrated in the New York area, with a total UPB of $14.5 million. Both pools are open to purchase by eligible bidders. This initiative is managed in partnership with BofA Securities, Inc. and First Financial Network, Inc., a woman-owned and -controlled firm, serving as advisors.
Potential buyers must submit their bids for the large pool by May 2, 2024, and for the CIP by May 16, 2024.
Fannie Mae stipulates that the purchaser of these non-performing loans must offer borrowers sustainable loss mitigation options. Purchasers are also obligated to continue any ongoing loss mitigation measures, such as forbearance plans and loan modifications, at the time of acquisition. Furthermore, buyers must provide a range of loss mitigation solutions, including potential principal forgiveness, before proceeding with foreclosures on any loans secured by properties that are not vacant or condemned. Should foreclosure be unavoidable, the loan owner is required to prioritize selling the property to owner-occupants and non-profits ahead of investors, aligning with the principles of Fannie Mae’s FirstLook® program.
For more information, read the original press release from: https://www.fanniemae.com/newsroom/fannie-mae-news/sale-non-performing-loans-april-2024