Mortgage giant puts 162,200 loans up for sale
Fannie Mae has announced its 21st reperforming loan sale, a move that is part of the GSE’s ongoing effort to reduce the size of its retained mortgage portfolio.
The sale consists of roughly 12,200 loans with an unpaid principal balance of approximately $1.6 billion. The deal, marketed in collaboration with Citigroup Global Markets, is available for purchase by qualified bidders until July 08, 2021.
Reperforming loans are mortgages that were previously delinquent but have reperformed for a period of time. Under the terms of the sale, buyers need to offer loss-mitigation options that are sustainable to any borrower who may re-default within five years after the closing of the reperforming loan sale. Buyers must also report on loss mitigation outcomes until a loan becomes current for 12 consecutive months.
According to the Mortgage Bankers Association, 2.1 million homeowners are still in forbearance plans as of May 30. The share of Fannie Mae and Freddie Mac loans in forbearance were down one basis point to 2.18%.
