Fannie Mae announced its latest sale of non-performing loans as part of the company’s ongoing efforts to reduce the size of its portfolio of retained mortgages, including the company’s twentieth Community Impact Pool (CIP). CIPs are typically smaller loan pools that are geographically targeted and marketed to encourage participation from nonprofits, minority and women-owned businesses (MWOBs), and small investors.
The four major pools include approximately 5,780 loans totaling $959.1 million in outstanding principal balance (UPB), and the CIP includes approximately 70 loans totaling $16.3 million at the UPB. The CIP consists of loans geographically located in the Miami-Dade area. All pools are available for purchase by qualified bidders. This sale of non-performing loans is being marketed in conjunction with Bank of America Securities, Inc. and First Financial Network, Inc. as advisors.
Offers are due on the four largest pools here October 4, 2022 and on the CIP by October 18, 2022.
The terms of Fannie Mae’s non-performing loan transactions require the purchaser of the non-performing loans to provide loss mitigation options designed to be sustainable for the borrowers. All purchasers of non-performing loans are required to honor all loss mitigation efforts approved or in progress at the time of closing, including forbearance agreements and loan modifications.
In addition, purchasers of non-performing loans should offer defaulting borrowers a cascade of loss mitigation options, including loan modifications, which may include forgiveness of principal, before initiating any loan foreclosure. . In the event that a foreclosure cannot be prevented, the loan owner must market the property to homeowners and nonprofit organizations before offering it to investors, similar to Fannie Mae’s FirstLook program.
Interested bidders are encouraged to sign up for future announcements, training and other information here.