#United States #Washington #Fannie Mae #Non-Performing Loans #Residential Credit

Fannie Mae's Recent Non-Performing Loan Sale: Key Insights

Fannie Mae, the well-known entity in the secondary mortgage market, recently unveiled the results of its twenty-seventh non-performing loan sale, making waves in the financial community. The announcement dated July 8, 2025, showcases a significant sale comprising 1,304 deeply delinquent loans, which account for an astonishing $285 million in unpaid principal balance (UPB). This transaction is anticipated to close on September 19, 2025, and includes two distinct pools of loans that were available for bidding.

Details of the Sale

The sale comprised two separate pools:

• - Pool 1: This collection included 332 loans with an aggregate UPB of $73,092,445. The average loan size within this pool was $220,158, accompanied by a weighted average note rate of 4.45%. The weighted average broker's price opinion (BPO) loan-to-value ratio stood at 49%.

• - Pool 2: This pool had a larger segment consisting of 972 loans, carrying a total UPB of $211,965,249. Here, the average loan size was reported at $218,071, and it featured a weighted average note rate of 4.39%. Furthermore, the weighted average BPO loan-to-value ratio was slightly higher at 50% than Pool 1.

Both pools attracted strong interest, resulting in competitive bids. The second-highest bid, known as the cover bid, reached 99.66% of UPB for Pool 1 and 99.82% for Pool 2, indicating robust market interest.

Winning Bidders

The winning bids were secured by:

• - Pool 1: Residential Credit Opportunities Trust X-C emerged as the winning bidder, further solidifying their presence in the distressed asset market.
• - Pool 2: RCF II Loan Acquisition, LP won the bidding for this larger pool of loans, showcasing their capabilities in managing and acquiring non-performing assets.

Obligations of Purchasers

A critical aspect of this transaction mandates that all purchasers are required to honor any pre-existing or ongoing efforts aimed at loss mitigation. This includes any approved loan modifications, ensuring that borrowers receive various loss mitigation options, such as possible principal forgiveness, before foreclosure actions can be initiated.

Moreover, in scenarios where foreclosure becomes unavoidable, the loan owner must first attempt to market the property to owner-occupants and non-profits. This aligns with Fannie Mae's FirstLook® program, emphasizing their commitment to responsible asset management.

Conclusion

This recent non-performing loan sale by Fannie Mae not only highlights their ongoing efforts to manage distressed assets but also reflects the prevailing investor interest in secondary mortgage markets. As the market adapts to evolving economic conditions, Fannie Mae continues to be at the forefront, offering opportunities for investors while upholding borrower protection measures. Interested parties looking to engage with future sales can easily register for updates, training sessions, and other pertinent information from Fannie Mae's dedicated platforms.

In summary, the sale reinforces Fannie Mae's role in the housing finance system while facilitating strategic partnerships with private investors to enhance loan performance in the market.