Fannie Mae is selling off another batch of nonperforming loans (NPLs).
This latest sale features four larger pools of approximately 8,200 loans totaling $1.527 billion in unpaid principal balance (UPB) and a Community Impact Pool of approximately 80 loans, focused in the Miami area, totaling about $20 million in UPB.
Fannie Mae’s Community Impact Pools are smaller pools of loans that are marketed to smaller investors, nonprofit organizations, and minority- and women-owned businesses. They tend to be geographically focused and higher occupancy.
“The NPLs that are included in today’s sale announcement have been previously solicited for loss mitigation opportunities by Fannie Mae servicers, but they, unfortunately, remain seriously delinquent,” says Joy Cianci, senior vice president of single-family credit portfolio management for Fannie Mae, in a release. “We believe other investors will offer additional opportunities for these borrowers to avoid foreclosure.
“We are also pleased to build on the success of our Community Impact Pool sales,” Cianci continues. “Selling severely delinquent loans can benefit communities and reduce risk for taxpayers. We will continue to structure pool sales to encourage participation from nonprofits and minority- and women-owned businesses.”
Bids on the four larger pools are due by May 5. Bids for the Community Impact Pool are due by May 19.