Fannie Mae Announces Twenty-third Sale of Reperforming Loans

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) has initiated its twenty-third sale of reperforming loans, comprising approximately 18,800 loans with an unpaid principal balance of $2.9 billion. This effort aims to reduce its retained mortgage portfolio. The sale is being conducted in collaboration with Citigroup Global Markets, and bids are due by November 2, 2021. Buyers must adhere to loss mitigation options for borrowers who re-default within five years post-sale, ensuring compliance with ongoing forbearance and modification efforts.

Positive

• Reduction of retained mortgage portfolio through loan sale.
• Collaboration with Citigroup increases market access.

Negative

• None.

WASHINGTON, Oct. 7, 2021 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today began marketing its twenty-third 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 18,800 loans, having an unpaid principal balance of approximately $2.9 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 November 2, 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 re-defaults 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, following closing, 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 the size of Fannie Mae's latest loan sale?

The latest loan sale consists of approximately 18,800 loans with an unpaid principal balance of approximately $2.9 billion.

When are bids due for Fannie Mae's loan sale?

Bids for Fannie Mae's loan sale are due on November 2, 2021.

What type of loans is Fannie Mae selling?

Fannie Mae is selling reperforming loans, which have been delinquent but have shown improvement.

How does Fannie Mae support borrowers after a loan sale?

Purchasers must offer loss mitigation options to borrowers who re-default within five years and honor existing forbearance arrangements.