Fannie Mae (OTCQB: FNMA)recently announced the start of its twenty-first sale of reperforming loans as part of the company’s ongoing effort to reduce the size of its retained mortgage portfolio.
The sale consists of approximately 12,200 loans, having an unpaid principal balance of approximately $1.6 billion, and is available for purchase by qualified bidders.
This sale of reperforming loans is being marketed in collaboration with Citigroup Global Markets, Inc. Bids are due on July 8, 2021.
Reperforming loans are loans that were previously delinquent but have reperformed for a period of time. The terms of Fannie Mae’s reperforming loan sale require the buyer to offer loss mitigation options designed to be sustainable to any borrower who may re-default within five years following the closing of the reperforming loan sale. In addition, buyers must report on loss mitigation outcomes. Any reporting requirements cease once a loan has been current for 12 consecutive months after the closing of the reperforming loan sale.
Interested bidders can register for ongoing announcements, training, and other information.