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Non-Performing Loan Sales


 

In an effort to reduce substantial inventories of non-performing loans (NPLs) and improve borrower outcomes, in 2014 FHFA approved a pilot program by Freddie Mac to sell NPLs and later approved sales of NPLs by both Enterprises. FHFA announced enhanced requirements for the Enterprises’ NPL sales in March 2015. Additional enhancements were announced in April 2016. FHFA believes that the sale of severely delinquent loans through NPL sales will improve borrower and neighborhood outcomes and will reduce Enterprise losses while reducing risk to taxpayers.

KEY ELEMENTS OF ENHANCED NPL SALE GUIDELINES

  • NPL buyers must evaluate borrowers whose mark-to-market loan-to-value ratio is over 115 percent for modifications that include principal reduction and/or arrearages forgiveness.
  • NPL buyers may not “walk away” from vacant properties.
  • Proprietary modifications must be fixed rate or offer an initial period of reduced payments with limits on subsequent increases consistent with HAMP requirements – the initial fixed-rate period must last for at least 5 years, and rate increases are limited to 1 percent per year thereafter.

 News Releases

 

 

FHFA Releases Report on Non-performing Loan Sales277906/1/2020 5:00:56 PM6/1/2020 5:00:56 PMHome / Media / FHFA Releases Report on Non-performing Loan Sales News Release The sale of NPLs reduces the STS_ListItem_850https://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspx1422930https://www.fhfa.govhtmlFalseaspxhttp://www.int.fhfa.gov/Media/PublicAffairs{5D270B88-B139-4DD8-9D63-BC2C41B53307}~sitecollection/_catalogs/masterpage/Display Templates/Search/Item_PublicAffairs.js32;44;1632
FHFA Releases Report on Non-performing Loan Sales269016/17/2019 3:00:47 PM6/17/2019 3:00:47 PMHome / Media / FHFA Releases Report on Non-performing Loan Sales News Release The sale of NPLs reduces the STS_ListItem_850https://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspx1963250https://www.fhfa.govhtmlFalseaspxhttp://www.int.fhfa.gov/Media/PublicAffairs{2C939566-0C62-4417-BCCE-5B2DC8B8265D}~sitecollection/_catalogs/masterpage/Display Templates/Search/Item_PublicAffairs.js32;44;1632
FHFA Releases New Report on Non-performing Loan Sales2587112/4/2018 4:00:31 PM12/4/2018 4:00:31 PMHome / Media / FHFA Releases New Report on Non-performing Loan Sales News Release In the first half of 2018 STS_ListItem_850https://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspx2438120https://www.fhfa.govhtmlFalseaspxhttp://www.int.fhfa.gov/Media/PublicAffairs{805FBEFA-A4BB-4062-ADAE-B336ECAA437E}~sitecollection/_catalogs/masterpage/Display Templates/Search/Item_PublicAffairs.js32;44;1632
FHFA Releases Fifth Report on Non-performing Loan Sales216406/13/2018 5:00:03 PM6/13/2018 5:00:03 PMHome / Media / FHFA Releases Fifth Report on Non-performing Loan Sales News Release STS_ListItem_850https://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspx1843270https://www.fhfa.govhtmlFalseaspxhttp://www.int.fhfa.gov/Media/PublicAffairs{D4BC495B-585F-4644-B5CF-3D5AA2795E53}~sitecollection/_catalogs/masterpage/Display Templates/Search/Item_PublicAffairs.js32;44;1632
FHFA Releases Further Data on Non-performing Loan Sales2133812/5/2017 4:00:20 PM12/5/2017 4:00:20 PMHome / Media / FHFA Releases Further Data on Non-performing Loan Sales News Release STS_ListItem_850https://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspx1034240https://www.fhfa.govhtmlFalseaspxhttp://www.int.fhfa.gov/Media/PublicAffairs{06303337-AE7E-4EA3-9FE5-21BE001FEA5C}~sitecollection/_catalogs/masterpage/Display Templates/Search/Item_PublicAffairs.js32;44;1632

 Reports

 

 

Enterprise Non-Performing Loan Sales Report - December 2019277926/1/2020 5:01:00 PM6/1/2020 5:01:00 PMHome / About FHFA / Reports / Enterprise Non-Performing Loan Sales Report - December 2019 Enterprise STS_ListItem_850https://www.fhfa.gov/AboutUs/Reports/Pages/Forms/AllItems.aspx436460https://www.fhfa.govhtmlFalseaspxhttp://www.int.fhfa.gov/AboutUs/Reports{B4486EBD-0E34-46CF-9BE2-81DAE92BFDFF}~sitecollection/_catalogs/masterpage/Display Templates/Search/Item_Default_FHFA.js44;1644
Enterprise Non-Performing Loan Sales Report - June 20193010912/2/2019 6:00:45 PM12/2/2019 6:00:45 PMHome / About FHFA / Reports / Enterprise Non-Performing Loan Sales Report - June 2019 Enterprise STS_ListItem_850https://www.fhfa.gov/AboutUs/Reports/Pages/Forms/AllItems.aspx903170https://www.fhfa.govhtmlFalseaspxhttp://www.int.fhfa.gov/AboutUs/Reports{B043D27B-9A16-47BE-85BB-A148F8E694B0}~sitecollection/_catalogs/masterpage/Display Templates/Search/Item_Default_FHFA.js44;1644
Enterprise Non-Performing Loan Sales Report - December 2018269126/17/2019 3:00:56 PM6/17/2019 3:00:56 PMHome / About FHFA / Reports / Enterprise Non-Performing Loan Sales Report - December 2018 Enterprise STS_ListItem_850https://www.fhfa.gov/AboutUs/Reports/Pages/Forms/AllItems.aspx64180https://www.fhfa.govhtmlFalseaspxhttp://www.int.fhfa.gov/AboutUs/Reports{EDE4B4D6-AB2F-4729-9A01-147E7227C1D9}~sitecollection/_catalogs/masterpage/Display Templates/Search/Item_Default_FHFA.js44;1644
Enterprise Non-Performing Loan Sales Report - June 20182586412/4/2018 4:00:29 PM12/4/2018 4:00:29 PMHome / About FHFA / Reports / Enterprise Non-Performing Loan Sales Report - June 2018 Enterprise STS_ListItem_850https://www.fhfa.gov/AboutUs/Reports/Pages/Forms/AllItems.aspx1108130https://www.fhfa.govhtmlFalseaspxhttp://www.int.fhfa.gov/AboutUs/Reports{CDF6EDBC-7229-495B-B0F1-3598A7D61A88}~sitecollection/_catalogs/masterpage/Display Templates/Search/Item_Default_FHFA.js44;1644
Enterprise Non-Performing Loan Sales Report - June 20172268312/5/2017 4:00:23 PM12/5/2017 4:00:23 PMHome / About FHFA / Reports / Enterprise Non-Performing Loan Sales Report - June 2017 Enterprise STS_ListItem_850https://www.fhfa.gov/AboutUs/Reports/Pages/Forms/AllItems.aspx53860https://www.fhfa.govhtmlFalseaspxhttp://www.int.fhfa.gov/AboutUs/Reports{5AB2A453-B2FF-4DE0-956D-49367E68E39C}~sitecollection/_catalogs/masterpage/Display Templates/Search/Item_Default_FHFA.js44;1644

 Fact Sheet

 

 

Non-Performing Loan Sale Guidelines221172/12/2018 7:59:08 PM2/12/2018 7:59:08 PMHome / Media / Non-Performing Loan Sale Guidelines Fact Sheet The Federal Housing Finance Agency (FHFA STS_ListItem_850https://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspx2363500https://www.fhfa.govhtmlFalseaspxhttp://www.int.fhfa.gov/Media/PublicAffairs{E1E2D1C7-451B-4C6D-B814-885C9010851B}~sitecollection/_catalogs/masterpage/Display Templates/Search/Item_PublicAffairs.js32;44;1632

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