Fannie Mae Plans To Join Freddie Mac In Selling Non-Performing Loans
Fannie announced last Thursday that it will begin selling non-performing loans to interested buyers, joining Freddie Mac.
Last week, Freddie Mac completed its largest sale of delinquent loans to GCAT Management Services, selling off $5398 deeply delinquent non-performing loans that carried an aggregate unpaid principle balance of $985 million.
Around March 2nd, the Federal Housing Finance Agency (FHFA) began setting up new requirements for sales of non-performing loans by Freddie & Fannie. These requirements are in place to ensure the loans are transfered to capable mortgage servicers. FHFA director Melvin Watt stated, “these enhanced requirements will result in more favorable outcomes for borrowers and local communities while also reducing losses to the Enterprises and, therefore, to taxpayers”….”Under the requirements announced today (March 2nd, 2015), servicers must consider borrowers for a wide range of alternatives to foreclosure”.
Fannie is hopeful in marketing its first NPL (non-performing loan) transaction in the near future. Fannie is also hopeful that as it continues to increase the amount of transactions, nonprofit organizations, smaller investors and minority and women-owned businesses will begin purchasing them