Fannie Mae Announces Sale of Non-Performing Loans to Support Community Impact
Fannie Mae, the leading provider of mortgage financing in the United States, has recently announced its latest sale of non-performing loans. This initiative is part of the company’s ongoing efforts to reduce the size of its retained mortgage portfolio. The sale includes a large pool of approximately 1,555 loans with an unpaid principal balance of $217.5 million, as well as a Community Impact Pool (CIP) consisting of around 60 loans totaling $18.6 million in unpaid principal balance.
Community Impact Pools are smaller loan pools that are geographically focused and marketed to encourage participation from non-profit organizations, minority- and women-owned businesses, and smaller investors. In this case, the CIP includes loans located in the New York area. Qualified bidders have the opportunity to purchase these pools, with bids for the large pool due by October 31, 2023, and bids for the CIP due by November 16, 2023.
Fannie Mae’s non-performing loan transactions require the buyer to offer sustainable loss mitigation options to borrowers. This includes honoring any approved or in-process loss mitigation efforts at the time of closing, such as forbearance arrangements and loan modifications. Furthermore, buyers must provide delinquent borrowers with a range of loss mitigation options, including loan modifications with potential principal forgiveness, before initiating foreclosure.
In the event that foreclosure becomes unavoidable, the owner of the loan must prioritize marketing the property to owner-occupants and non-profit organizations before offering it to investors. This approach aligns with Fannie Mae’s FirstLook® program, which aims to support community development and affordable housing initiatives.
Fannie Mae is collaborating with BofA Securities, Inc. and First Financial Network, Inc., a woman-owned and -controlled business, as advisors for this sale of non-performing loans. Interested bidders are encouraged to register for future announcements, training, and additional information on Fannie Mae’s website.
Fannie Mae remains committed to advancing equitable and sustainable access to homeownership and quality, affordable rental housing for millions of people across America. Through responsible innovation, they continue to make homebuying and renting easier, fairer, and more accessible.
For more information about Fannie Mae and their initiatives, please visit their official website and social media channels.