The GSEs have sold around 700,000 loans in non-performing loan (NPL) and reperforming loan (RPL) pools since 2015. During the height of the COVID pandemic, Fannie Mae sold off 99,100 reperforming loans, the highest total for any year.
When their loans are sold, the homeowners lose access to streamlined foreclosure alternatives created to help homeowners save their homes. Instead of accessing GSE loss mitigation offerings and their clear eligibility rules, borrowers whose loans are sold are left with weak and opaque options developed by the investors who take over these loans. GSE guidelines that describe the loss mitigation options that the buyer of the loan must offer are so vague that they do not ensure that meaningful home retention options will be available.