Interested bidders have until October 29 to participate
Fannie Mae has announced the initiation of its latest sale of reperforming loans, marking a significant step in the organization’s strategy to streamline its retained mortgage portfolio. A news release noted the offering includes approximately 8,721 loans with an unpaid principal balance of around $1.429 billion, now available for qualified bidders.
The sale, managed in collaboration with Citigroup Global Markets, Inc., is part of Fannie Mae’s ongoing efforts to enhance its financial stability while ensuring responsible lending practices. Bids for the reperforming loans must be submitted by October 29, 2024.
Fannie Mae has started marketing its reperforming loans to reduce its retained mortgage portfolio. Reperforming loans are those that were previously delinquent but are now current on payments, with or without a loan modification plan.
To protect borrowers, Fannie Mae has established specific conditions for this sale, requiring buyers to implement loss mitigation strategies for any borrower who may face re-default within five years of the sale’s closing. This includes honoring existing loss mitigation agreements, such as forbearance and loan modifications, at the time of sale.
In addition, purchasers are called on to provide a range of loss mitigation options to assist delinquent borrowers. This may include loan modifications with potential principal forgiveness before any foreclosure actions are initiated.
Bidders interested in the sale can find registration details and further information on Fannie Mae’s dedicated platform for ongoing announcements and training.
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