Fannie Mae Announces Seventeenth Sale of Reperforming Loans

Rhea-AI Summary

Fannie Mae (FNMA) has initiated the marketing of its seventeenth sale of reperforming loans, comprising about 19,800 loans with an unpaid principal balance of $2.8 billion. The loans, which may include some up to 90 days delinquent, are available for purchase by qualified bidders, with bids due on October 6, 2020. The buyers must implement loss mitigation options to assist borrowers who might re-default within five years and report on the outcomes of these measures. The sale is coordinated with Citigroup Global Markets, Inc.

Positive

• Initiation of sale of 19,800 reperforming loans, valued at $2.8 billion, potentially attracting investor interest.
• Requirements for buyers to implement loss mitigation may improve borrower outcomes and reduce re-default rates.

Negative

• Potential risk of loans being up to 90 days delinquent may deter some investors.
• The focus on reperforming loans indicates ongoing issues in loan performance and borrower defaults.

WASHINGTON, Sept. 10, 2020 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today began marketing its seventeenth 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 19,800 loans, having an unpaid principal balance of approximately $2.8 billion, 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 October 6, 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 at https://www.fanniemae.com/portal/funding-the-market/npl/index.html. 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 Americans. 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

Fannie Mae Newsroom: 
https://www.fanniemae.com/news

Photo of Fannie Mae:
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Fannie Mae Resource Center
1-800-2FANNIE

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SOURCE Fannie Mae

FAQ

What is the total value of Fannie Mae's seventeenth sale of reperforming loans?

The total value is approximately $2.8 billion.

When is the deadline for bids on the reperforming loans sale by Fannie Mae?

Bids are due on October 6, 2020.

How many loans are included in Fannie Mae's seventeenth sale?

The sale consists of approximately 19,800 loans.

What are reperforming loans?

Reperforming loans are those that were previously delinquent but have been brought current.