Fannie Mae (OTCQB: FNMA) has launched the marketing of its newest sale of reperforming loans, as part of its ongoing initiative to downsize its retained mortgage portfolio. This offering includes approximately 3,119 loans, with a total unpaid principal balance of about $611.2 million, available for purchase by qualified bidders. Interested parties can register to participate in the sale here.
This sale is being conducted in partnership with Citigroup Global Markets, Inc., with bids due by September 5, 2024. Reperforming loans are those that were previously or are currently delinquent but have resumed consistent payments for a designated period.
As part of the sale’s conditions, Fannie Mae requires buyers to provide loss mitigation options for borrowers who may default again within five years of the sale’s closing. Additionally, purchasers must honor any existing or in-process loss mitigation efforts, such as forbearance agreements and loan modifications. Before initiating foreclosure on any loan, buyers are also obligated to offer a range of loss mitigation options, including loan modifications that may involve principal forgiveness.
Interested bidders can register for updates, training, and further details here. Fannie Mae will also post information regarding specific loan pools available for purchase on this page.
