Fannie Mae is selling a pool of approximately 1,205 deeply delinquent mortgages totaling $221.9 million in unpaid principal balance (UPB) and a community impact pool (CIP) totaling approximately 52 deeply delinquent loans totaling $14.5 million in UPB.
The CIP consists of loans geographically located in the New York area.
CIPs are typically smaller pools of loans that are geographically focused and marketed to encourage participation by non-profit organizations, minority- and women-owned businesses (MWOBs), and smaller investors.
The sale of non-performing loans is being marketed in collaboration with BofA Securities Inc. and First Financial Network Inc., a woman-owned and -controlled business, as advisors.
Bids are due on the one large pool by May 2 and on the CIP by May 16.
Terms of Fannie Mae’s non-performing loan transactions require the buyer of the non-performing loans 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.
In addition, 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.
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, similar to Fannie Mae’s FirstLook program.
Photo: Freepik
