Fannie Mae Announces Twentieth Sale of Reperforming Loans

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) announced its twentieth sale of reperforming loans on April 8, 2021. This sale includes approximately 24,900 loans, with an unpaid principal balance of around $4.3 billion. The sale aims to reduce the size of Fannie Mae's retained mortgage portfolio and will be marketed in collaboration with Citigroup Global Markets. Bids are due by May 4, 2021. Buyers are required to implement sustainable loss mitigation options for borrowers at risk of re-default. This initiative reflects Fannie Mae's ongoing commitment to housing finance reforms.

Positive

• Sale of 24,900 reperforming loans valued at $4.3 billion can help reduce portfolio risk.
• Collaboration with Citigroup Global Markets may enhance market reach and transaction efficiency.

Negative

• None.

WASHINGTON, April 8, 2021 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today began marketing its twentieth 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 24,900 loans, having an unpaid principal balance of approximately $4.3 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 4, 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

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

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Fannie Mae Resource Center
1-800-2FANNIE

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SOURCE Fannie Mae

FAQ

What is Fannie Mae's recent reperforming loan sale about?

Fannie Mae's recent reperforming loan sale involves approximately 24,900 loans valued at $4.3 billion, aimed at reducing its retained mortgage portfolio.

When is the deadline for bids on Fannie Mae's reperforming loans?

Bids for Fannie Mae's reperforming loans are due by May 4, 2021.

Who is collaborating with Fannie Mae on the loan sale?

Fannie Mae is collaborating with Citigroup Global Markets for the marketing of its reperforming loans.

What requirements must buyers meet in Fannie Mae's loan sale?

Buyers must offer sustainable loss mitigation options for borrowers potentially facing re-default within five years.