A new report provides insight into the sale of non-performing loans by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp.
Fannie Mae and Freddie Mac have sold more than 41,600 non-performing mortgages with an aggregate unpaid principal balance of $8.5 billion through May 31.
Average delinquency on the residential loans that were included in the sales was 3.4 years, while the average current loan-to-value ratio came to 98 percent.
The statistics were reported the by the two companies’ regulator and conservator, the Federal Housing Finance Agency.
Nearly half of the loans that have been sold by Fannie and Freddie were secured by properties located in Florida, New Jersey and New York.
After the non-performing loans were sold, 8.5 percent of borrower-occupied loans were foreclosed versus 21.3 percent of vacant-property mortgages.
Of the 8,849 loan sold by June 30, 2015, and outcomes reported as of Dec. 31, 2015, just under a quarter have been resolved — with about half of those loans resolved through foreclosure.
“This report reflects the first available results since the enterprises started to sell NPLs and since we put in place enhanced requirements for servicing these loans,” FHFA Director Melvin L. Watt stated in the report.
Watt added that because the program is new, only preliminary data about outcomes is available.
