Fannie Mae Sells Mortgages
- For the first time in history, Fannie Mae announces its sale of non-performing loans. Bidders that qualify can purchase from approximately 3,200 non-performing mortgage loans. Accumulatively, the principal balance of unpaid loans reaches a whopping $786 million. Fannie Mae is collaborating with Bank of America Merrill Lynch, Credit Suisse and The Williams Capital Group.
“We are pleased to offer this first transaction, which will help us reduce the number of seriously delinquent loans we own while providing additional foreclosure prevention opportunities,” said Joy Cianci, Fannie Mae’s Senior Vice President for Credit Portfolio Management. “We plan to build these sales into a programmatic offering, and look forward to working with a diverse range of potential buyers over time, including smaller investors, nonprofit organizations and minority- and women-owned businesses.”
Fannie Mae has made updates, announcements, information, and training available to hopeful bidders who register. Qualified bidders can register at http://www.fanniemae.com/portal/funding-the-market/npl/index.html. As previously announced, Fannie Mae will also post information about specific pools available for purchase at that page.
Administered by the Federal Housing Finance Agency, NPL requirements must be followed when Freddie Mac or Fannie Mae sells non-performing mortgages. According to these recently announced guidelines, the new owner of the loans must offer mortgage modifications to borrowers. The loan owner is required to market the property to owner-occupants and non-profits exclusively before offering it to investors when a foreclosure is unavoidable.
“Fannie Mae Announces Initial Sale of Non-Performing Loans” Fannie Mae. FannieMay.com, 08 April.
2015. Web. 09 April 2015. <http://www.fanniemae.com/portal/about-us/media/financial-news/2015/6235.html>