Fannie Mae recently announced its 11th sale of reperforming loans – a portfolio of approximately 21,400 loans with unpaid principal balance of approximately $3.3 billion.
The sale is being marketed in collaboration with Citigroup Global Markets, Inc.
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 company says in a release.
Buyers are required 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.
The loans are being sold as part of the company’s ongoing effort to reduce the size of its retained mortgage portfolio.