Fannie Mae Announces Pilot Sale of Reperforming Loans
WASHINGTON, DC – Fannie Mae (FNMA/OTC) today began marketing its first sale of reperforming loans as part of the company’s ongoing effort to reduce the size of its retained mortgage portfolio.
The pool of approximately 3,600 loans, totaling $806 million in unpaid principal balance, is available for purchase by qualified bidders. This sale of reperforming loans is being marketed in collaboration with Citigroup Global Markets, Inc. Bids are due on November 1, 2016.
“We are pleased to offer this first sale of reperforming loans,” said Bob Ives, vice president of retained portfolio asset management, Fannie Mae. “This sale will support our efforts to reduce the size of the company’s balance sheet.”
Reperforming 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 plan. The terms of Fannie Mae’s reperforming loan sale require the buyer to offer loss mitigation options designed to be sustainable, to any borrower who may re-default after the sale, and prohibit the buyer from “walking away” from any home that might become vacant.
Interested bidders can register for ongoing announcements, training, and other information at http://www.fanniemae.com/portal/funding-the-market/npl/index.html. Fannie Mae will also post information about specific pools available for purchase on that page.