Fannie Mae is auctioning a pool of approximately 3,141 reperforming mortgage loans as part of its ongoing effort to reduce the size of its retained mortgage portfolio.
The pool has an unpaid principal balance (UPB) of approximately $559.8 million.
The loans are subserviced by NewRez, d/b/a Shellpoint Mortgage Servicing, for Fannie Mae.
This sale is being marketed in collaboration with Citigroup Global Markets, Inc.
Bids are due on March 26, 2025.
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 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.
More information here.