WASHINGTON (4/6/15)--Fannie Mae will begin selling pools of nonperforming single-family mortgages, the government-sponsored enterprise announced last week.
According to the organization, in the future similar transactions will be targeted for purchase by nonprofit organizations, smaller investors and minority and women-owned businesses.
"These transactions are intended to reduce the number of seriously delinquent loans that Fannie Mae owns, to help stabilize neighborhoods, and to offer borrowers access to additional foreclosure prevention options," said Joy Cianci, Fannie Mae's senior vice president for credit portfolio management. "Our goal is to market these loans to a diverse range of buyers. We look forward to building these sales into a regular, programmatic offering to the market."
Last month the Federal Housing Finance Agency (FHFA) announced enhanced requirements for the sales of nonperforming loans for both Fannie Mae and Freddie Mac.
Requirements for these guidelines include that the new owner of the loans offer mortgage modifications to borrowers. When a foreclosure cannot be prevented, FHFA guidelines require the loan owner to market the property to owner-occupants and nonprofits exclusively before offering it to investors.