The transaction is expected to close on July 24, with BofA Securities and First Financial Network serving as advisors on marketing the pool.
As mandated, the purchaser must comply with several requirements aimed at preventing foreclosures and supporting homeownership retention. These include honoring any approved or in-process loss mitigation efforts like forbearance arrangements and loan modifications.
Additionally, the buyer must offer delinquent borrowers loss mitigation options, including potential principal forgiveness loan modifications, prior to pursuing foreclosure actions.
The sale continues Fannie Mae’s strategy of auctioning off non-performing loans through Community Impact Pools while ensuring foreclosures remain a last resort through oversight and assistance obligations.
While Fannie Mae has conducted these delinquent loan sales for over five years now, the latest deal comes amid rising interest rates and tightening lending standards reported across the mortgage industry in early 2024.
