Fannie Mae has begun marketing its thirtieth sale of reperforming loans as part of its ongoing effort to reduce the size of its retained mortgage portfolio.
The sale consists of approximately 12,800 loans, having an unpaid principal balance of approximately $2.65 billion, and is available for purchase by qualified bidders.
This sale of reperforming loans is being marketed in collaboration with Citigroup Global Markets Inc. Bids are due on October 5.
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 may re-default 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, 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.
Photo by RDNE Stock project
