Fannie Mae Announces Nineteenth Sale of Reperforming Loans

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) has initiated its nineteenth sale of reperforming loans, aiming to shrink its retained mortgage portfolio. This sale features approximately 25,000 loans with a total unpaid principal balance of $3.5 billion, open for qualified bidders until March 30, 2021. The initiative includes provisions for loss mitigation options for buyers, targeting sustainable outcomes for borrowers at risk of re-defaulting. The sale is managed in partnership with Citigroup Global Markets.

Positive

• Sale of approximately 25,000 reperforming loans valued at $3.5 billion enhances liquidity.
• Structured loss mitigation options promote borrower sustainability.

Negative

• None.

WASHINGTON, March 9, 2021 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today began marketing its nineteenth 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 nearly 25,000 loans with an unpaid principal balance of approximately $3.5 billion, and is available for purchase by qualified bidders. Interested bidders can register 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 March 30, 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 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 people in America. 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 Fannie Mae's recent loan sale about?

Fannie Mae announced its nineteenth sale of reperforming loans, comprising approximately 25,000 loans valued at $3.5 billion.

When is the bidding deadline for Fannie Mae's loan sale?

Bids for the loan sale are due on March 30, 2021.

What are reperforming loans in the context of Fannie Mae's sale?

Reperforming loans are those that were previously delinquent but have returned to a performing status.

Who is managing Fannie Mae's loan sale?

The sale is being managed in collaboration with Citigroup Global Markets.