Fannie Mae Announces Third NPL Sale

Fannie Mae has announced that it is selling three pools of nonperforming loans (NPLs) with about $1.2 billion in unpaid principal balance (UPB).

The portfolio of about 7,000 loans is being marketed in collaboration with Credit Suisse Securities (USA) LLC, J.P. Morgan Securities, Bank of America Merrill Lynch and the Williams Capital Group LP.

Pool 1 of the portfolio is approximately $419 million in UPB, Pool 2 is approximately $590 million in UPB, and Pool 3 is approximately $235 million in UPB.

Bids are due by Nov. 2.

‘This is our third sale of nonperforming loans – meant to reduce the number of severely delinquent loans we hold and provide borrowers with additional options to avoid foreclosure,’ says Joy Cianci, senior vice president of credit portfolio management at Fannie Mae, in a release. ‘As with previous loan sales, servicers are required to apply a range of options to help borrowers avoid foreclosure whenever possible. These actions help in stabilizing neighborhoods and reducing severely delinquent loans on our books.’

As required under Freddie Mac's rules related to NPL sales, in the event that a foreclosure cannot be prevented, the loan owner must market the property to owner-occupants and nonprofits exclusively before offering it to investors.


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