Sale is part of efforts to trim its portfolio of non-performing loans
Fannie Mae continued to slash the size of its retained mortgage portfolio, selling over $243 million in non-performing loans (NPLs).
The government-sponsored enterprise announced Thursday its latest NPL sale, which included Fannie's twenty-first Community Impact Pool (CIP) – a smaller pool of loans geographically located in the Miami-Dade area and marketed to encourage participation by non-profit organizations, minority- and women-owned businesses (MWOBs), and smaller investors.
The CIP comprised 25 loans totaling $6.6 million in unpaid principal loans, and the large pool included roughly 1,460 loans totaling $236.5 million in UPB. Fannie collaborated with BofA Securities and First Financial Network, a woman-owned and -controlled business, to market this NPL sale.
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Under Fannie Mae's terms, buyers of non-performing loans are required to offer borrowers sustainable loss mitigation options. Buyers also need to honor any approved or in-process loss mitigation efforts at the time of closing, including forbearance arrangements and loan modifications.
"Additionally, non-performing loan buyers 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 not secured by property which is vacant or condemned at the time of closing," Fannie Mae said. "In the event, a foreclosure cannot be prevented, the owner of the loan must market the property to owner-occupants and non-profits before offering it to investors."
According to its news release, bids on the one large pool are available for purchase by qualified until September 07, and bids on the CIP pool are due by September 20.
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