Fannie Mae Announces Twenty-Fourth Sale of Reperforming Loans

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) has initiated the marketing of its twenty-fourth sale of reperforming loans, comprising approximately 8,050 loans with an unpaid principal balance of $1.3 billion. The sale aims to reduce the size of Fannie Mae's retained mortgage portfolio and is open to qualified bidders, with bids due by March 1, 2022. Purchasers are required to provide loss mitigation options to borrowers potentially facing re-default within five years post-sale. Citigroup Global Markets is partnering with Fannie Mae in this transaction.

Positive

• Sale of 8,050 reperforming loans valued at $1.3 billion could improve liquidity.
• Encouragement of loss mitigation practices may enhance borrower retention.

Negative

• Potential for borrower re-default may expose Fannie Mae to additional risks.
• Dependence on the sale for portfolio reduction may indicate ongoing challenges in managing retained assets.

WASHINGTON, Feb. 8, 2022 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today began marketing its twenty-fourth 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 8,050 loans, having an unpaid principal balance of approximately $1.3 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 March 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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SOURCE Fannie Mae

FAQ

What is the purpose of Fannie Mae's twenty-fourth sale of reperforming loans?

The sale aims to reduce the size of Fannie Mae's retained mortgage portfolio by marketing approximately 8,050 reperforming loans.

When are bids due for the reperforming loans sale by Fannie Mae?

Bids are due by March 1, 2022.

What is the total unpaid principal balance of the loans being sold by Fannie Mae?

The total unpaid principal balance of the loans is approximately $1.3 billion.

What requirements are placed on buyers of Fannie Mae's reperforming loans?

Buyers are required to offer loss mitigation options to borrowers who may re-default within five years and honor existing arrangements at the time of sale.