Fannie Mae To Securitize Reperforming Loans

Fannie Mae plans to start securitizing reperforming loans held on the company’s balance sheet in the second half of this year.

The government-sponsored enterprise says it may eventually decide to sell these mortgage-backed securities to investors, as it continues to reduce the size of its retained mortgage portfolio.

“With these securitizations we’ll have more flexibility to manage our risk and reduce the size of our portfolio,” says Bob Ives, vice president of retained portfolio asset management for Fannie Mae, in a release. “Over the long run, these securitizations can benefit investors, Fannie Mae and taxpayers.”

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