FHFA Releases Non-Performing Loan Sales Data
Fannie Mae and Freddie Mac sold 163,297 non-performing loans with a total unpaid principal balance of $30.0 billion from program inception in 2014 through June 30, 2023, the Federal Housing Finance Agency reported.
FHFA released its latest Non-Performing Loan Sales Report on Thursday. It includes sales information about NPLs sold through June 30. Borrower outcomes reflect NPLs sold through December 31, 2022.
“The sale of NPLs reduces the number of delinquent loans in the enterprises’ portfolios and transfers credit risk to the private sector,” the report said. “FHFA and the enterprises impose requirements on NPL buyers designed to achieve more favorable outcomes for borrowers than foreclosure.”
The loans included in the NPL sales had an average delinquency of 2.8 years and an average current mark-to-market loan-to-value ratio of 84 percent (not including capitalized arrearages), FHFA reported.
According to FHFA, NPL Sales Highlights include:
The average delinquency for pools sold ranged from 1.1 years to 6.2 years.
Fannie Mae has sold 112,730 loans with an aggregate UPB of $20.3 billion, an average delinquency of 2.8 years and an average LTV of 81 percent.
Freddie Mac has sold 50,567 loans with an aggregate UPB of $9.7 billion, an average delinquency of 2.7 years and an average LTV of 90 percent.
NPLs in New Jersey, New York and Florida represent 40 percent of the NPLs sold.
Borrower Outcomes Highlights include:
The borrower outcomes in the report are based on 160,576 NPLs that were settled by December 31, 2022 and reported as of June 30, 2023.
Compared to a benchmark of similarly delinquent enterprise NPLs that were not sold, foreclosures avoided for sold NPLs were higher than the benchmark.
NPLs on homes occupied by borrowers had the highest rate of foreclosure avoidance outcomes (45.6 percent foreclosure avoided versus 17.9 percent for vacant properties).
NPLs on vacant homes had a much higher rate of foreclosure, more than double the foreclosure rate of borrower-occupied properties (76.4 percent foreclosure versus 28.0 percent for borrower occupied properties). Foreclosures on vacant homes typically improve neighborhood stability and reduce blight as the homes are sold or rented to new occupants.
The average UPB of NPLs sold was $184,231.
FHFA will continue to provide reporting on NPL sales borrower outcomes on an ongoing basis.
Read the latest Non-Performing Loan Sales Report.
For more information, visit the NPL page on FHFA.gov.
FHFA: Latest Report on Non-Performing Loan Sales
The Federal Housing Finance Agency released the latest report on the sale of non-performing loans by Fannie Mae and Freddie Mac.
The Enterprise Non-Performing Loan Sales Report includes sales information about NPLs sold through June 30, 2023. Borrower outcomes reflect NPLs sold through December 31, 2022.
The sale of NPLs reduces the number of delinquent loans in the Enterprises’ portfolios and transfers credit risk to the private sector. FHFA and the Enterprises impose requirements on NPL buyers designed to achieve more favorable outcomes for borrowers than foreclosure.
This report shows that the Enterprises sold 163,297 NPLs with a total unpaid principal balance (UPB) of $30.0 billion from program inception in 2014 through June 30, 2023. The loans included in the NPL sales had an average delinquency of 2.8 years and an average current mark-to-market loan-to-value (LTV) ratio of 84 percent (not including capitalized arrearages).
NPL Sales Highlights include:
The average delinquency for pools sold ranged from 1.1 years to 6.2 years.
Fannie Mae has sold 112,730 loans with an aggregate UPB of $20.3 billion, an average delinquency of 2.8 years, and an average LTV of 81 percent.
Freddie Mac has sold 50,567 loans with an aggregate UPB of $9.7 billion, an average delinquency of 2.7 years, and an average LTV of 90 percent.
NPLs in New Jersey, New York, and Florida represent 40 percent of the NPLs sold.
Borrower Outcomes Highlights:
The borrower outcomes in the report are based on 160,576 NPLs that were settled by December 31, 2022 and reported as of June 30, 2023.
Compared to a benchmark of similarly delinquent enterprise NPLs that were not sold, foreclosures avoided for sold NPLs were higher than the benchmark.
NPLs on homes occupied by borrowers had the highest rate of foreclosure avoidance outcomes (45.6 percent foreclosure avoided versus 17.9 percent for vacant properties).
NPLs on vacant homes had a much higher rate of foreclosure, more than double the foreclosure rate of borrower-occupied properties (76.4 percent foreclosure versus 28.0 percent for borrower occupied properties). Foreclosures on vacant homes typically improve neighborhood stability and reduce blight as the homes are sold or rented to new occupants.
The average UPB of NPLs sold was $184,231.
