Fannie Mae and Freddie Mac have sold 154,972 nonperforming loans as of Dec. 31, 2022, with a total unpaid balance of $28.7 billion, according to the Non-Performing Loan Sales Report released today by the Federal Housing Finance Agency. Typically, the NPLs were built with a delinquency of two.8 years and a typical current loan-to-value ratio of 86%. Up to 50 % (41%) of the NPLs sold originated from New Jersey, New York and Florida.
The report also surveyed borrower outcomes based on the 128,087 NPLs that settled by June 30, 2022. As of Dec. 31, 81% of these NPLs had been resolved. Foreclosure avoidances were highest when homes were occupied by borrowers-the foreclosure rate for vacant properties was 77.9%, as the foreclosure rate for borrower-occupied properties was 33.7%. The report also compared the foreclosure rate among sold NPLs to some benchmark of similarly delinquent loans which were not sold, noting that sold NPLs resulted in fewer foreclosures.
