Fannie Mae and Freddie Mac have sold 163,297 nonperforming loans, with a total unpaid balance of $30 billion, from program inception in 2014 through Dec. 31, 2022, according to the Non-Performing Loan Sales Report released today by the Federal Housing Finance Agency. On average, the NPLs had a delinquency of 2.8 years and an average current loan-to-value ratio of 84%. Forty percent of the NPLs sold were in New Jersey, New York and Florida.
The report also surveyed borrower outcomes based on the 152,313 NPLs that were settled by June 30, 2022, and reported as of Dec. 31 last year. Compared to a benchmark of similarly delinquent Enterprise NPLs that were not sold, foreclosures avoided for sold NPLs were higher than the benchmark. NPLs on homes occupied by borrowers had the highest rate of foreclosure avoidance outcomes (43.8% foreclosure avoided versus 17.4% for vacant properties). NPLs on vacant homes had a much higher rate of foreclosure, more than double the foreclosure rate of borrower-occupied properties (75.4% foreclosure compared to 28.8% for borrower occupied properties). The average unpaid principal balance of NPLs sold was $184,231.