Fannie Mae is looking to sell approximately 12,775 reperforming mortgages with unpaid principal balance of about $1.8 billion.
This is Fannie Mae’s 15th sale of reperforming loans and its first for this year. The sale is part of the company’s ongoing effort to reduce the size of its retained mortgage portfolio.
The sale is being marketed in collaboration with Citigroup Global Markets, Inc.
Bids are due on March 10, 2020.
Reperforming loans are loans that were previously delinquent, but have reperformed for a period of time. Some of the loans may be up to 90 days delinquent.
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 sale.
In addition, buyers must report on loss mitigation outcomes. Any reporting requirements cease once a loan has been current for 12 consecutive months after the closing of the sale.