Weekly Real Estate News
Fannie Mae announced Monday the results of its latest non-performing loan sale, naming Residential Credit Opportunities Trust IX-D as the winning bidder for a pool of 919 loans totaling approximately $203.3 million in unpaid principal balance.
The transaction is expected to close by Nov. 4, 2026. BofA Securities served as advisor on the sale.
The pool has an average loan size of $221,222, a weighted-average note rate of 4.31%, and a weighted-average broker price opinion loan-to-value ratio of 48%, according to Fannie Mae. The cover bid, representing the second-highest bid, was 100.375% of unpaid principal balance.
Borrower protections remain attached to the loans
Fannie Mae requires purchasers of its non-performing loans to honor approved or in-process loss-mitigation efforts at the time of sale, including loan modifications.
Buyers also must offer delinquent borrowers a waterfall of loss-mitigation options before initiating foreclosure on loans that are not secured by vacant or condemned properties. Those options may include loan modifications and principal forgiveness.
If foreclosure cannot be prevented, the loan owner must first market the property to owner-occupants and nonprofit organizations before offering it to investors, consistent with requirements similar to Fannie Mae’s FirstLook program.
Sale follows August marketing announcement
Fannie Mae announced the non-performing loan offering on Aug. 19. At that time, the larger pool contained approximately 943 deeply delinquent loans totaling $207.4 million in unpaid principal balance. Fannie Mae also announced a separate Community Impact Pool of approximately 26 loans totaling $6.7 million concentrated in the Dallas-Fort Worth area.
Monday’s announcement covers the winning bidder for the larger pool. Bids for the separate Community Impact Pool are due Sept. 23.
Fannie Mae says its non-performing loan sales are designed to reduce the number of deeply delinquent loans it owns, manage credit risk and support neighborhood stabilization. Federal Housing Finance Agency guidelines governing the sales include borrower safeguards and requirements intended to encourage broad buyer participation.
Sources: Fannie Mae; Fannie Mae Capital Markets.
Photo: Tierra Mallorca/Unsplash.
