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e debate over who—or what—makes a suitable buyer in
an agency sale of non-performing loans (NPLs) has become
more intensified in the last year as HUD, Fannie Mae, and
Freddie Mac sell more and more of these deeply delinquent
single-family mortgage loans.
e issue has become hotter and the
debate has grown so fierce that several
prominent lawmakers in both the U.S. Senate
and the House on both sides of the fence have
thrown punches in an attempt to achieve
what they believe is the best outcome.
HUD, through its Distressed Asset
Stabilization Program (DASP), has sold more
than $18 billion worth of non-performing
loans since the program was created in 2010.
Fannie Mae and Freddie Mac have sold
a combined $5.8 billion worth of deeply
delinquent loans since mid-2014 when bulk
NPL sales began.
Democrats, angry that nearly all of
these loans—all of which are at least a year
delinquent, and many are three, four, and
sometimes more than five years delinquent—
are being sold to private investors and equity
firms who the they believe are more focused
on making a quick buck than on preventing
foreclosure, rebuilding communities, or
stabilizing neighborhoods.
Republicans, meanwhile, believe that any
I N D U S T R Y I N S I G H T / B R I A N H O N E A
DUKING
Congress Gets in the Ring Over
Non-Performing Loan Sales.
IT OUT
