Both Fannie Mae and Freddie Mac are actively selling off their residential non-performing loans (NPL) in bulk via auction. Freddie Mac kicked off 2016 in a big way with residential non-performing loan (NPL) sales. In February 2016, Freddie Mac announced its largest bulk NPL transaction yet—an auction of residential NPLs serviced by Nationstar Mortgage totaling $1.6 billion in unpaid principal balance (UPB). Freddie Mac’s last bulk NPL sale was completed in December when about 5,300 deeply delinquent loans serviced by Wells Fargo with an aggregate UPB of $1.1 billion were sold via auction in five SPOs. Pretium Mortgage was the winning bidder in three of the pools and 21st Mortgage Corporation and Rushmore Loan Management were the winners of the other two pools. Click here for more details.
Fannie Mae announced its first bulk NPL sale by auction of 2016 and fourth overall. The NPL offering announced (FNMA 2016-NPL1) includes 6,700 loans totaling $1.35 billion in aggregate unpaid principal balance (UPB), making it the largest Fannie Mae NPL sale of the four in terms of UPB. The previous largest was $1.24 billion in November 2015. Click here for more details.
As these pools are dissected by the winning bidders, portions will be sold off downstream to smaller funds like Resolution Capital. We anticipate these assets to become available in Q3/Q4 of 2016.