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FHFA Releases Further Data on Non-performing Loan Sales


Washington, DC – The Federal Housing Finance Agency (FHFA) today released its second report providing information about the sale of non-performing loans (NPLs) by Fannie Mae and Freddie Mac (the Enterprises).  The Enterprise Non-Performing Loan Sales Report includes NPL sales data through August 31, 2016 and preliminary outcomes for borrowers as of June 30, 2016.  The sale of NPLs reduces the number of severely delinquent loans in the Enterprises' portfolios and imposes on NPL buyers FHFA requirements that encourage prioritization of outcomes other than foreclosure for borrowers.  An initial report of NPL sales and borrower outcome data was released in June.

The new report shows that, through August of 2016, the Enterprises had sold over 59,629 NPLs with a total unpaid principal balance of $11.9 billion. 

  • The NPLs had an average delinquency of 3.4 years and an average current loan-to-value ratio of 97 percent.

  • New Jersey, Florida and New York accounted for nearly half (49 percent) of the NPLs sold.  These three states also accounted for 47 percent of the Enterprises' loans that are 1 year or more delinquent as of December 31, 2014.

  • A nonprofit organization, Community Loan Fund of New Jersey, was the winning bidder on eight of nine small, geographically concentrated pools sold by the Enterprises through August 2016 and is a service provider for the ninth pool.

The outcomes in the report, which pertain only to the 25,612 NPLs that were sold by December 31, 2015 and reflect outcomes only through June 30, 2016, reflect the following: 

  • Compared to a benchmark of similarly delinquent Enterprise NPLs that were not sold, foreclosure avoidance for NPLs sold was higher than the benchmark loans the Enterprises did not sell (29 percent of NPLs that have been with the new servicers the longest avoided foreclosure compared to 19 percent of the benchmark NPLs).

  • NPLs where the home is occupied by the borrower had a higher rate of foreclosure avoidance (17.1 percent foreclosure avoided versus 9.8 percent for vacant properties).

  • NPLs on which the property was vacant had a much higher rate of foreclosure (29.3 percent foreclosure versus 10.3 percent for borrower occupied properties).  Foreclosure on vacant homes improves neighborhood stability and reduces blight as the homes are sold or rented to new occupants.

  • To date, only 31 percent of the 25,612 NPLs sold by December 31 have been resolved, 16 percent without foreclosure and 15 percent through foreclosure, so there is much more information to be gathered on the outcomes associated with NPL sales.

FHFA has stated that it will continue to provide regular updates on NPL sales and the outcomes of those sales as additional information is gathered.

Link to Non-Performing Loan Sales Report

Link to NPL page on FHFA.gov (Guidelines, etc)



The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks.  These government-sponsored enterprises provide more than $5.8 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on Twitter @FHFA, YouTube and LinkedIn.​​


​Media: Corinne Russell (202) 649-3032 / Stefanie Johnson (202) 649-3030 

C​onsumers: Consumer Communications or (202) 649-3811​

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