Fannie Mae has chosen a buyer for 919 delinquent mortgages carrying $203.3 million in unpaid principal, and the purchaser is bound to honor loss mitigation already approved or in process for those borrowers. The company announced the result of its twenty-eighth non-performing loan sale on Sept. 21, naming Residential Credit Opportunities Trust IX-D as the buyer. Closing is expected Nov. 4, so the loans remain Fannie Mae’s until then.
The pool: 919 loans, one buyer and a Nov. 4 closing
According to Fannie Mae’s release, the pool totals 919 loans with an unpaid principal balance of $203,303,314, sold as a single pool. The average loan is $221,222, the weighted average note rate is 4.31 percent and the weighted average loan-to-value ratio is 48 percent, measured against broker price opinions. BofA Securities served as marketing advisor. The release reports the cover bid, meaning the second-highest offer, at 100.375 percent of unpaid principal, and it does not give the winning price.
The Nov. 4 closing is described as expected, which makes it a target date and not a completed transfer of ownership, and the borrower protections attach to that closing.
The release also gives no count of households. Loans and borrowers are not the same, since one household can hold more than one loan, and the document does not say how many people or which states sit behind the 919 mortgages.
The purchaser’s duty to honor approved and in-process loss mitigation
The core borrower protection is a condition of the sale. Fannie Mae’s release says the purchaser must honor all approved or in-process loss mitigation efforts at closing, including modifications. A borrower whose modification was approved, or was still under review when the sale was announced, is therefore covered by the requirement on the terms the release describes.
Because the buyer takes over an existing file, the obligation matters most to borrowers partway through a workout. The release does not describe what documentation a borrower should keep, and it names no single official responsible for the requirement, so the responsible institution is Fannie Mae as seller and the trust as purchaser.
A loss-mitigation waterfall that may include principal forgiveness
Beyond honoring pending work, the purchaser must “offer delinquent borrowers a waterfall of loss mitigation options, including loan modifications, which may include principal forgiveness, prior to initiating foreclosure” on properties that are not vacant or condemned. At the pool’s average of $221,222 per loan, a modification that reduces principal would be working on balances of that scale, and Fannie Mae’s summary calls the required offer a complete waterfall. The word “may” carries weight. The release sets a requirement to offer a range of options, and it stops short of promising forgiveness to anyone.
For a delinquent homeowner on a fixed income, the stake is measurable. A modification can change the payment and the balance, while a foreclosure ends ownership. The release does not say how much any borrower could be forgiven or what terms any borrower will be offered, only that the options must be put on the table before foreclosure starts on an occupied home.
Owner-occupants and nonprofits get the first look at properties
If a home does reach the sale stage, the release requires the purchaser to market properties to owner-occupants and nonprofits first before foreclosure completion. The text read sets no time period and no discount for that first look.
The same priorities appear on Fannie Mae’s whole loan sales page, which says these sales are “intended to reduce the number of deeply delinquent loans that Fannie Mae owns, manage credit risk, and, support neighborhood stabilization.” It states that buyers must “offer loan modifications to borrowers and provide foreclosure alternatives whenever possible,” and that “property sales to owner-occupants and non-profit agencies must be prioritized” if foreclosure cannot be prevented. The page lists transactions from 2015 through 2026, so the twenty-eighth sale is one in a long series rather than a one-off.
What a loan sale leaves unchanged for the borrower
The Consumer Financial Protection Bureau explains in its guidance on mortgage sales that a new owner “cannot change the terms of your agreement,” and that the new owner must send notice within 30 days with “the date of transfer, name, address, and telephone number of the new owner.” If payment processing moves to a different company, a separate notice follows, and the bureau stresses following the payment instructions in it so that no payment is missed.
Whether Fannie Mae owns a particular loan can be checked through the Fannie Mae homeowner site, which offers a loan lookup tool and a link to contact a housing counselor. Borrowers behind on payments can also reach a HUD-approved counselor, which the CFPB’s housing counselor directory describes as help with “defaults, forbearances, foreclosures, and credit issues” that is “often at little or no cost.” The CFPB line for that directory is 1-855-411-2372. Fannie Mae’s media contact for the sale release is Kelly Antonacci, at 202-752-0524.
Homeownership costs that sit outside the mortgage
Older homeowners on fixed incomes carry property-tax bills alongside the mortgage, and relief from those bills usually depends on an application and a renewal date. The kit is written for retirees and renters who want that paperwork in one place.
The Senior Property Tax & Home-Cost Relief Kit is an 11-page kit that covers the 5 kinds of property-tax relief and heating, cooling and home-repair help, with an application log and renewal calendar for tracking each deadline.
Get The Senior Property Tax & Home-Cost Relief Kit and its renewal calendar →
This article was produced with AI assistance and checked against the primary sources linked above.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
