The Enterprise Non-Performing Loan Sales Report includes information about Non‐Performing Loans (NPLs) sold through June 30, 2023 and reflects borrower outcomes as of June 30, 2023, on NPLs sold through December 31, 2022. The sale of NPLs by Fannie Mae and Freddie Mac (the Enterprises) reduces the number of delinquent loans held in their inventories and transfers credit risk to the private sector. The sales help achieve more favorable outcomes for borrowers and local communities than the outcomes that would be achieved if the Enterprises held the NPLs in their portfolios. The sales also help reduce losses to the Enterprises and to taxpayers. NPLs are generally one year or more delinquent. Purchasers of Enterprise NPLs are subject to requirements published by FHFA, which have been enhanced over time as described on page 3 of the report.
This report provides information about the Enterprises' sales of NPLs and borrower outcomes post‐sale. The report contains the following key information:
- Quantity and attributes of NPLs sold from August 1, 2014, through June 30, 2023.
- Borrower outcomes as of June 30, 2023, on NPLs sold through December 31, 2022.
- Borrower outcomes post‐sale compared to a benchmark of similarly delinquent Enterprise NPLs that were not sold.
- Pool level information and outcomes, including the buyers of the NPLs*.
Some pools have reached the end of the required four-year reporting period. Outcomes for these pools are held constant at the four-year mark.
This report shows that, through June 30, 2023, the Enterprises sold 163,297 NPLs with an aggregate unpaid principal balance (UPB) of $30.0 billion. The loans included in the NPL sales had an average delinquency of 2.8 years and an average current mark-to-market LTV ratio of 84 percent, not including capitalized arrearages. Average delinquency for pools sold ranged from 1.1 to 6.2 years.
* The outcomes of a Freddie Mac pilot sale in August 2014 are not included in this report because the transaction was executed before FHFA issued NPL sales and reporting requirements.