FHFA: 24% Of NPLs Sold Through May Have Been ‘Resolved’
About 24% of the 41,649 nonperforming loans (NPLs) that government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac had auctioned through May were “resolved,” with about 12% of those having gone through foreclosure, according to a report recently released by the Federal Housing Finance Agency (FHFA).
The remaining 75% were basically still in delinquency (in trial modification stage – delinquent after being modified post-NPL sale or delinquent and not-modified post-NPL sale), according to the report.
Of the 24% that had been “resolved,” about 12% were resolved without foreclosure (deed-in-lieu, paid in full, short sale, loan mod or self cure) and 12% were resolved through foreclosure.
The pools of loans sold as of the end of May had an aggregate unpaid principal balance (UPB) of about $8.5 billion, according to the report.
The loans had an average delinquency of 3.4 years and an average loan-to-value ratio of 98%, not including capitalized arrearages. The average period of delinquency ranged from 1.8 years to 6.3 years.
More here…
Copy of the report here…
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The real “kicker” here is the fact that non-performing loans are already in default or “dishonor” and selling them off as defaulted-paper takes the power of sale off the table and EVERY ONE of them can [only] be foreclosed through a “Judicial Foreclosure” action … because the [only] party that buys defaulted non-performing debts … are “DEBT-COLLECTORS.” Debt collectors are not given bona-fide purchaser status, and in fact, are deemed as a “Thief” in possession of bearer-paper.
Yet … every single mortgage loan included in those portfolios will be foreclosed on through a non-judicial foreclosure action, even though that action is disallowed by law for any debt-collector?!?