Fannie Mae is auctioning a pool of approximately 3,119 reperforming loans with an unpaid principal balance of approximately $611.2 million as part of its ongoing effort 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 September 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.
Photo: Eskay Lim