Large pool of loans worth over $217.5 million
Fannie Mae has announced its latest sale of non-performing loans as part of its efforts to reduce the volume of its retained mortgage portfolio, including its 22nd Community Impact Pool (CIP).
In a news release, the company said the one large pool includes around 1,555 loans, which equates to over $217.5 million in unpaid principal balance (UPB). Meanwhile, the CIP, which is a smaller pool of loans, includes about 60 loans, which total to approximately $18.6 million in UPB.
BofA Securities, Inc. and First Financial Network, Inc. will serve as advisors to the sale. The bids are due on October 31, 2023 for the large pool and on November 16, 2023 for the CIP. Interested bidders are advised to register for future announcements, training, and other information.
Terms of Fannie Mae’s non-performing loan transactions require the buyer to offer loss mitigation options designed to be sustainable for borrowers. All buyers of non-performing loans are required to honor any approved or in-process loss mitigation efforts at the time of closing, including forbearance arrangements and loan modifications.
Also, they must offer delinquent borrowers a waterfall of loss mitigation options, 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. The owner of the loan, in the event a foreclosure cannot be prevented, must market the property to owner-occupants and non-profits before offering it to investors.
Have thoughts about this story? Let us know in the comments below.
