Over 1,000 delinquent mortgages hit the market in latest sale
Fannie Mae has announced the sale of non-performing loans totaling more than $205 million in unpaid principal balance (UPB), continuing efforts to reduce the size of its retained mortgage portfolio.
According to a news release, the latest offering includes two major loan pools consisting of approximately 1,119 deeply delinquent loans with a combined UPB of $198.6 million. Also included is the twenty-sixth Community Impact Pool (CIP), made up of approximately 40 loans totaling $7.2 million in UPB. The CIP is concentrated in Florida and is part of a broader initiative to target neighborhoods with higher proportions of delinquent loans and potential for borrower assistance.
Qualified bidders may submit bids for the two larger pools by May 15, 2025. Bids for the CIP are due by May 27, 2025. The sale is being marketed in partnership with BofA Securities, Inc. and First Financial Network, Inc.
Fannie Mae emphasized that all transactions involving non-performing loans include requirements to support borrower assistance. Buyers must adhere to approved or ongoing loss mitigation efforts at the time of closing, such as loan modifications, and must offer a “waterfall” of mitigation options—including principal forgiveness—before initiating foreclosure proceedings on loans secured by non-vacant and non-condemned properties.
If foreclosure becomes necessary, loan owners are obligated to prioritize sales to owner-occupants and nonprofit organizations before offering properties to investors. This requirement reflects principles from the company’s FirstLook® program, aimed at promoting neighborhood stability and supporting homeownership.
Fannie Mae invites potential bidders to register for updates and resources related to future loan sale offerings. Detailed information on the available loan pools can be found on the company’s loan sale website.
This sale occurs as affordability challenges persist in the housing market. Fannie Mae’s Economic and Strategic Research Group projects that existing home sales will remain near historic lows through 2025, influenced by elevated mortgage rates and limited housing supply.
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