Fannie Mae Announces Twenty-sixth Sale of Reperforming Loans

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) announced the launch of its twenty-sixth sale of reperforming loans, comprising approximately 9,980 loans with an unpaid principal balance of $1.57 billion. This initiative aims to reduce its retained mortgage portfolio. The sale, in collaboration with Citigroup Global Markets, expects bids by July 7, 2022. Buyers must honor existing loss mitigation efforts for borrowers, offering options such as loan modifications to prevent foreclosure. This move demonstrates Fannie Mae's commitment to maintaining market stability and supporting mortgage affordability.

Positive

• Initiative to sell 9,980 reperforming loans valued at $1.57 billion improves liquidity.
• Collaboration with Citigroup Global Markets enhances market reach and credibility.
• Requirements for loss mitigation support demonstrate commitment to borrower welfare.

Negative

• None.

WASHINGTON, June 9, 2022 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today began marketing its twenty-sixth 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 9,980 loans, having an unpaid principal balance of approximately $1.57 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 7, 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 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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SOURCE Fannie Mae

FAQ

What is Fannie Mae's sale of reperforming loans?

Fannie Mae's sale involves approximately 9,980 loans valued at $1.57 billion aimed at reducing its mortgage portfolio.

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

Bids for the sale of reperforming loans are due by July 7, 2022.

How do buyers need to support borrowers in Fannie Mae's loan sale?

Buyers are required to honor existing loss mitigation efforts and offer options like loan modifications to delinquent borrowers.

What is the primary purpose of Fannie Mae's loan sale?

The primary purpose is to reduce the size of Fannie Mae's retained mortgage portfolio while supporting mortgage affordability in the market.