Fannie Mae Announces Twenty-first Sale of Reperforming Loans

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) announced the commencement of its twenty-first sale of reperforming loans, aimed at reducing its retained mortgage portfolio. The offering includes approximately 12,200 loans with an unpaid principal balance of $1.6 billion, available for qualified bidders. Bids are due by July 8, 2021. The loans in this sale had been previously delinquent but have since reperforming. Buyers are required to implement sustainable loss mitigation options for any potential borrower re-defaults within five years.

Positive

• Sale of approximately 12,200 reperforming loans valued at $1.6 billion.
• Initiative supports reduction of retained mortgage portfolio.

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• None.

WASHINGTON, June 10, 2021 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today began marketing its twenty-first 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 12,200 loans, having an unpaid principal balance of approximately $1.6 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 July 8, 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 12 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:
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https://www.fanniemae.com/news

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SOURCE Fannie Mae

FAQ

What is Fannie Mae's latest loan sale announcement?

Fannie Mae announced the sale of approximately 12,200 reperforming loans valued at $1.6 billion, aimed at reducing its mortgage portfolio.

When is the bid deadline for Fannie Mae's loan sale?

Bids for the loan sale are due by July 8, 2021.

What are reperforming loans?

Reperforming loans are those that were previously delinquent but have resumed regular payments.

How does Fannie Mae ensure borrower support in its loan sales?

Buyers must offer sustainable loss mitigation options for potential borrower re-defaults within five years.

What is the significance of Fannie Mae's sale of reperforming loans?

This sale helps Fannie Mae manage its mortgage portfolio and mitigate financial risks associated with retained loans.