Fannie Mae Announces Twenty-Seventh Sale of Reperforming Loans

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) has commenced marketing its twenty-seventh sale of reperforming loans, encompassing around 6,130 loans with an unpaid principal balance of $997 million. This initiative is part of efforts to streamline its mortgage portfolio. Interested qualified bidders must submit their offers by September 8, 2022, in partnership with Citigroup Global Markets. The sale requires buyers to provide loss mitigation options for borrowers at risk of re-defaulting within five years. Fannie Mae continues to emphasize responsible homeownership access across the U.S.

Positive

• Initiative to reduce retained mortgage portfolio through a sale of 6,130 reperforming loans.
• Potential to enhance liquidity with $997 million in unpaid principal balance.
• Partnership with Citigroup Global Markets improves the marketing of the loan sale.

Negative

• None.

WASHINGTON, Aug. 11, 2022 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today began marketing its twenty-seventh 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 6,130 loans, having an unpaid principal balance of approximately $997 million, 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 8, 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 Fannie Mae's latest reperforming loan sale about?

Fannie Mae is marketing its twenty-seventh sale of reperforming loans, consisting of approximately 6,130 loans with a total unpaid principal balance of $997 million.

When is the deadline for bidding on Fannie Mae's reperforming loans?

The deadline for bids on the reperforming loans sale is September 8, 2022.

How does Fannie Mae support borrowers at risk of re-defaulting?

Fannie Mae's sale terms require buyers to provide loss mitigation options to borrowers who may re-default within five years.

Which firm is partnering with Fannie Mae for the loan sale?

Fannie Mae is collaborating with Citigroup Global Markets for the marketing of its reperforming loans sale.