Fannie Mae (OTCQB: FNMA) today began marketing its twelfth 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 16,600 loans, having an unpaid principal balance of approximately $2.6 billion, and is available for purchase by qualified bidders. Interested bidders can register here, at http://www.fanniemae.com/portal/funding-the-market/npl/index.html.
This sale of reperforming loans is being marketed in collaboration with Citigroup Global Markets, Inc. Bids are due on July 11, 2019.
Reperforming loans are mortgages that were previously delinquent but are performing again because payments on the mortgages have become current with or without the use of a loan modification. The terms of Fannie Mae’s reperforming loan sale require the buyer to offer loss mitigation options designed to be sustainable to any borrower who may re-default within five years following the closing of the reperforming loan sale. In addition, buyers must report on loss mitigation outcomes. Any reporting requirements cease once a loan has been current for twelve consecutive months after the closing of the reperforming loan sale.
Interested bidders can register for ongoing announcements, training, and other information at http://www.fanniemae.com/portal/funding-the-market/npl/index.html. Fannie Mae will also post information about specific pools available for purchase on that page.