Fannie Mae Announces Eighteenth Sale of Reperforming Loans

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) has initiated the marketing of its eighteenth sale of reperforming loans, aimed at decreasing its mortgage portfolio size. This sale comprises approximately 6,360 loans, with an unpaid principal balance of $734.2 million. Qualified bidders can submit bids until November 9, 2020. The loans, previously delinquent but now performing, may still show at-risk statuses. Buyers are required to implement loss mitigation strategies for borrowers likely to re-default within five years.

Positive

• The sale involves approximately 6,360 loans, helping to reduce Fannie Mae's mortgage portfolio.
• Unpaid principal balance of $734.2 million indicates substantial market activity.
• Involvement of Citigroup Global Markets enhances the sales process and credibility.

Negative

• Some loans may be up to 90 days delinquent, indicating ongoing risk.
• Potential future re-defaults pose a risk to buyers and Fannie Mae.

WASHINGTON, Oct. 15, 2020 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today began marketing its eighteenth 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 6,360 loans, having an unpaid principal balance of approximately $734.2 million, and is available for purchase by qualified bidders. Interested bidders can register here, on the Whole Loans Sales page.

This sale of reperforming loans is being marketed in collaboration with Citigroup Global Markets, Inc. Bids are due on November 9, 2020.

Reperforming loans are loans that were previously delinquent, but have reperformed for a period of time. Some of the loans may be up to 90 days delinquent. 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 twelve consecutive months after the closing of the reperforming loan sale.

Interested bidders can register for ongoing announcements, training, and other information here. Fannie Mae will also post information about specific pools available for purchase on that page.

About Fannie Mae
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of U.S. households. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit: fanniemae.com | Twitter | Facebook | LinkedIn | Instagram | YouTube | Blog

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SOURCE Fannie Mae

FAQ

What is the purpose of Fannie Mae's eighteenth sale of reperforming loans?

The sale aims to reduce Fannie Mae's retained mortgage portfolio.

How many loans are included in the current sale by Fannie Mae?

There are approximately 6,360 loans in the sale.

What is the total unpaid principal balance of the reperforming loans being sold?

The total unpaid principal balance is approximately $734.2 million.

When are bids due for Fannie Mae's reperforming loan sale?

Bids are due on November 9, 2020.

What are reperforming loans?

Reperforming loans are those that were previously delinquent but have resumed regular payments.