Fannie Mae Announces Sale of Reperforming Loans

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Fannie Mae initiates the sale of reperforming loans to reduce its retained mortgage portfolio, offering approximately 6,507 loans with an unpaid principal balance of $1.470 billion. The sale, in collaboration with Citigroup Global Markets, Inc., requires buyers to provide loss mitigation options to borrowers and honor existing arrangements. Bids are due on May 9, 2024.

WASHINGTON, April 16, 2024 /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 6,507 loans, having an unpaid principal balance of approximately $1.470 billion, 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 May 9, 2024.

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 forbearance arrangements and 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.

About Fannie Mae
Fannie Mae advances equitable and sustainable access to homeownership and quality, affordable rental housing for millions of people across America. We enable the 30-year fixed-rate mortgage and drive responsible innovation to make homebuying and renting easier, fairer, and more accessible. To learn more, visit:
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SOURCE Fannie Mae

FAQ

What is Fannie Mae selling?

Fannie Mae is selling reperforming loans to reduce its retained mortgage portfolio.

How many loans are included in the sale?

Approximately 6,507 loans are included in the sale.

What is the unpaid principal balance of the loans?

The unpaid principal balance of the loans is approximately $1.470 billion.

When are bids due for the sale?

Bids for the sale are due on May 9, 2024.

What are reperforming loans?

Reperforming loans are loans that have been or are currently delinquent but have reperformed for a period of time.

What are the requirements for buyers of Fannie Mae's reperforming loans?

Buyers must offer loss mitigation options to borrowers, honor existing arrangements, and provide a waterfall of loss mitigation options before initiating foreclosure.