Fannie Mae and Freddie Mac started off selling non-performing mortgages at a rapid pace this year. In the first 2 months of the year over $2 Billion UPB were sold. Sale announcements in May and June indicate that another $1.3 Billion will be sold over the summer. These sales put both Fannie and Freddie ahead of last years sales pace.
FHFA (Federal Housing Finance Agency) has been working with HUD to make their sales more “transparent” so their pace was somewhat slowed down. That being said, they sold $1.4 Billion in May.
At the end of 2015, the sales numbers projected $21 Billion for these large auction sales in 2016. That would have been a small percentage increase from the $18 Billion the previous year. Although that could still be achieved, it appears more likely to be closer to last year’s numbers.