Fannie Mae Announces Twenty-Eighth Sale of Reperforming Loans

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) announced its twenty-eighth sale of reperforming loans, comprising around 10,400 loans with an unpaid principal balance of approximately $1.95 billion. This move is part of Fannie Mae's strategy to reduce its mortgage portfolio. Bids for the loans, marketed with Citigroup Global Markets, are due by November 1, 2022. Buyers are required to provide loss mitigation options for borrowers potentially re-defaulting within five years. Interested bidders can register for more information on Fannie Mae's website.

Positive

• Sale of approximately 10,400 loans valued at $1.95 billion helps reduce mortgage portfolio size.
• Collaboration with Citigroup Global Markets enhances market reach.

Negative

• None.

WASHINGTON, Oct. 6, 2022 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today began marketing its twenty-eighth 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 10,400 loans, having an unpaid principal balance of approximately $1.95 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 November 1, 2022.

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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https://www.fanniemae.com/news

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SOURCE Fannie Mae

FAQ

What is the significance of Fannie Mae's loan sale on October 6, 2022?

The sale involves 10,400 reperforming loans worth $1.95 billion, aimed at reducing Fannie Mae's mortgage portfolio.

What are reperforming loans sold by Fannie Mae?

Reperforming loans are loans that have been delinquent but have resumed payments.

When are bids due for Fannie Mae's reperforming loan sale?

Bids are due by November 1, 2022.

Who is managing the sale of reperforming loans for Fannie Mae?

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

How must purchasers handle borrowers who may re-default after buying loans?

Purchasers must offer loss mitigation options, including forbearance and loan modifications.