Fannie Mae is auctioning a portfolio of approximately 20,900 reperforming loans with unpaid principal balance (UPB) of approximately $3.1 billion.
The sale is part of the company’s ongoing effort to reduce the size of its retained mortgage portfolio.
This sale of reperforming loans is being marketed in collaboration with Citigroup Global Markets
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 12 consecutive months after the closing of the sale.