Fannie Mae Announces Twenty-Fifth Sale of Reperforming Loans

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) announced its twenty-fifth sale of reperforming loans, comprising approximately 7,600 loans with an unpaid principal balance of about $1.49 billion. The sale aims to reduce Fannie Mae's retained mortgage portfolio and is marketed in collaboration with Citigroup Global Markets. Bidding is open until May 3, 2022, with requirements for buyers to offer loss mitigation options to borrowers who may re-default. This initiative underscores Fannie Mae's commitment to responsible homeownership practices.

Positive

• Sale of approximately 7,600 reperforming loans valued at $1.49 billion may enhance liquidity.
• Buyers are mandated to provide loss mitigation options, promoting borrower support.

Negative

• None.

WASHINGTON, April 7, 2022 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today began marketing its twenty-fifth 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 7,600 loans, having an unpaid principal balance of approximately $1.49 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 3, 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:

fanniemae.com | Twitter | Facebook | LinkedIn | Instagram | YouTube | Blog

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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 twenty-fifth sale of reperforming loans?

The sale reduces Fannie Mae's retained mortgage portfolio, totaling approximately 7,600 loans valued at $1.49 billion.

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

Bids for the reperforming loans sale are due on May 3, 2022.

What are reperforming loans and their relevance in Fannie Mae's sale?

Reperforming loans are loans previously delinquent that have started making payments again, and Fannie Mae's sale focuses on these types to manage risk.