Fannie Mae Announces Twenty-second Sale of Reperforming Loans

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) has commenced marketing its twenty-second sale of reperforming loans, consisting of about 19,100 loans totaling an unpaid principal balance of approximately $2.2 billion. This initiative aims to reduce Fannie Mae's retained mortgage portfolio. Interested bidders must submit bids by September 9, 2021, and are required to offer loss mitigation options to borrowers at risk of re-defaulting. The sale is in partnership with Citigroup Global Markets. More details and registration can be found on Fannie Mae's website.

Positive

• Reduction of retained mortgage portfolio through the sale of $2.2 billion in reperforming loans.
• Opportunity for bidders to engage in loss mitigation efforts, potentially benefiting future loan performance.

Negative

• None.

WASHINGTON, Aug. 12, 2021 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today began marketing its twenty-second 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 19,100 loans, having an unpaid principal balance of approximately $2.2 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 September 9, 2021.

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 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
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SOURCE Fannie Mae

FAQ

What is the recent loan sale by Fannie Mae (FNMA)?

Fannie Mae is marketing its twenty-second sale of reperforming loans, consisting of approximately 19,100 loans with an unpaid principal balance of about $2.2 billion.

When are bids due for the Fannie Mae loan sale?

Bids for the loan sale are due by September 9, 2021.

What are reperforming loans in Fannie Mae's sale?

Reperforming loans are those that have been delinquent but have made timely payments for a certain period.

What requirements must bidders meet in the Fannie Mae loan sale?

Bidders are required to offer loss mitigation options to borrowers who may re-default within five years after the sale.