Fannie Mae is auctioning a portfolio of 15,100 re-performing mortgage loans with unpaid principal balance of approximately $3.01 billion.
Re-performing 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.
This is the company’s tenth sale of re-performing loans, as it continues 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 12.
Buyers must offer loss mitigation options to any borrower who re-defaults within five years of the deal closing.
In addition, buyers must report on loss mitigation outcomes.
Buyers can cease reporting on loans once they have been current for 12 consecutive months.