Qualified bidders welcomed for mortgage portfolio reduction
Fannie Mae, in line with its strategy to minimize the size of its retained mortgage portfolio, has started marketing its latest batch of reperforming loans.
The sale comprises around 4,874 loans with an unpaid principal balance of around $859.2 million. Fannie Mae has partnered with Citigroup Global Markets, with the deadline for bid submissions set for February 6.
The initiative is part of Fannie Mae’s broader efforts to effectively manage and reduce the size of its mortgage portfolio. According to its release, the offer is open to qualified bidders who can register for the sale through Fannie Mae’s designated platform.
Reperforming loans are those that were previously, or are currently, delinquent but have shown improved performance over time. A key aspect of this sale is the requirement for the buyer to offer various loss mitigation options to borrowers who may face delinquency again within five years after the sale’s closure.
Purchasers must respect any existing or ongoing loss mitigation measures at the point of sale, including forbearance agreements and loan modifications. Prospective buyers are also obliged to offer a range of loss mitigation strategies, including various loan modification options, which might encompass principal forgiveness, before proceeding with foreclosure on any loan.
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