April 08, 2015Fannie Mae Announces Initial Sale of Non-Performing Loans
WASHINGTON, DC – Fannie Mae (FNMA/OTC) today began marketing its first bulk-sale of non-performing loans (NPLs). The pool of approximately 3,200 loans totaling $786 million in unpaid principal balance is available for purchase by qualified bidders. This sale of NPLs is being marketed in collaboration with Bank of America Merrill Lynch, Credit Suisse and The Williams Capital Group.
“We are pleased to offer this first transaction, which will help us reduce the number of seriously delinquent loans we own while providing additional foreclosure prevention opportunities,” said Joy Cianci, Fannie Mae’s Senior Vice President for Credit Portfolio Management. “We plan to build these sales into a programmatic offering, and look forward to working with a diverse range of potential buyers over time, including smaller investors, nonprofit organizations and minority- and women-owned businesses.”
Interested bidders can register for ongoing announcements, training and other information at http://www.fanniemae.com/portal/funding-the-market/npl/index.html. Fannie Mae will also post information about specific pools available for purchase at that page. These sales were previously announced by Fannie Mae.
Recently, the Federal Housing Finance Agency (FHFA) announced NPL Requirements that must be followed when Fannie Mae or Freddie Mac sells non-performing loans. These guidelines require, among other elements, that the new owner of the loans offer mortgage modifications to borrowers. When a foreclosure cannot be prevented, the FHFA guidelines require the loan owner to market the property to owner-occupants and non-profits exclusively before offering it to investors, similar to Fannie Mae’s FirstLook® program.Fannie Mae enables people to buy, refinance, or rent homes.
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