Tag Archives: Non-Performing Loans

A new report dives into non-performing loan sales through June of 2017, including insights on foreclosure rates on both occupied and vacant homes.

The Federal Housing Finance Agency on Thursday released its third Enterprise Non-Performing Loan Sales Report, which lists all the sales of all non-performing loans from Freddie Mac and Fannie Mae to the private sector through December 31, 2016. The report tracks total loan sales, total number delinquent assents unloaded, and time of delinquency. It also strives to track borrower outcomes and measure how many properties were foreclosed on, how many avoided foreclosure, and the difference between homes that were sold to third parties and benchmark NPLs.

According to the GSE, the Federal Housing Finance Agency announced additional enhancements to its requirements for sales of non-performing loans by Fannie Mae and Freddie Mac on April 14, 2016, that build on requirements originally announced in March 2015. These enhancements apply to the non-performing sale that was announced today.

The GSE has announced the sale of five non-performing loan pools, including a smaller Community Impact Pool aimed at non-profits and minority-owned businesses.

With their recent non-performing loans sale, Colony Starwood Homes has substantially completed its exit from the non-performing loans business.

While HUD recently proposed changes to its distressed loan sale program allowing a "preferential bidding" option to involve more non-profits, Fannie Mae still sells its non-performing loans to the highest bidder.

Buyers of non-performing loan variations should focus on risk management and due diligence. This select print feature originally appeared in the July 2016 issue of DS News.

The goal of the FHFA's non-performing loan sales is to help borrowers avoid foreclosure. But the Agency's report indicated that the majority of NPLs sold by the GSEs have not achieved any outcome at all.

The transaction included five pools of non-performing loans serviced by Bayview Loan Servicing and were an average of five years delinquent.

Are the guidelines for the buyers of agency non-performing loans too strict or not strict enough? There are risks attached to both, which makes it necessary to find a balance between the two.