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.
Copy of the report here…