Fannie Mae and Freddie Mac have sold 130,808 nonperforming loans as of June 30, with a total unpaid balance of $24.5 billion, according to the Non-Performing Loan Sales Report released today by the Federal Housing Finance Agency. On average, the NPLs had a delinquency of 2.9 years and an average current loan-to-value ratio of 91%. Nearly half (43%) of the NPLs sold came from New Jersey, New York and Florida.
The report also surveyed borrower outcomes based on the 128,087 NPLs that settled by Dec 31, 2020. As of Dec. 31, 79% of these NPLs had been resolved. Foreclosure avoidances were highest when homes were occupied by borrowers—the foreclosure rate for vacant properties was 77.4%, while the foreclosure rate for borrower-occupied properties was 33%. The report also compared the foreclosure rate among sold NPLs to a benchmark of similarly delinquent loans that were not sold, noting that sold NPLs resulted in fewer foreclosures.