Fannie Mae Announces Sale of Reperforming Loans

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) has announced a new sale of reperforming loans as part of its strategy to reduce its retained mortgage portfolio. The sale package includes approximately 3,141 loans with an unpaid principal balance of $559.8 million.

The sale, marketed in collaboration with Citigroup Global Markets, Inc., will accept bids until March 26, 2025. Buyers must commit to specific terms, including:

• Offering loss mitigation options to borrowers who default within 5 years post-sale
• Honoring existing approved or in-process loss mitigation efforts
• Providing delinquent borrowers with loss mitigation options, including possible principal forgiveness, before initiating foreclosure

Positive

• Portfolio optimization through sale of $559.8M in reperforming loans
• Risk reduction in retained mortgage portfolio

Negative

• Reduction in interest-earning assets from portfolio

WASHINGTON, March 4, 2025 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today began marketing its most recent 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 3,141 loans, having an unpaid principal balance of approximately $559.8 million, and is available for purchase by qualified bidders. Interested bidders can register here.

This sale of reperforming loans is being marketed in collaboration with Citigroup Global Markets, Inc. Bids are due on March 26, 2025.

Reperforming loans are loans that have been or are currently 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 to any borrower who may re-default within five years following the closing of the reperforming loan sale. All purchasers are required to honor any approved or in-process loss mitigation efforts at the time of sale, including loan modifications. In addition, purchasers must offer delinquent borrowers a waterfall of loss mitigation options, including loan modifications, which may include principal forgiveness, prior to initiating foreclosure on any loan.

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.

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SOURCE Fannie Mae

FAQ

What is the total value of Fannie Mae's (FNMA) reperforming loan sale in March 2025?

The sale consists of 3,141 loans with an unpaid principal balance of approximately $559.8 million.

When is the deadline for bidding on FNMA's March 2025 reperforming loan sale?

Bids are due on March 26, 2025.

What are the buyer requirements for FNMA's reperforming loan sale?

Buyers must offer loss mitigation options for defaults within 5 years, honor existing loss mitigation efforts, and provide options including loan modifications before foreclosure.

What is the purpose of FNMA's reperforming loan sale program?

The program is part of Fannie Mae's ongoing effort to reduce the size of its retained mortgage portfolio.