Fannie puts 16,600 reperforming loans up for sale
Fannie Mae has announced its 12th sale of reperforming loans as part of the firm’s ongoing effort to trim the size of its retained mortgage portfolio.
The GSE said the sale, which is made up of nearly 16,600 loans with an unpaid principal balance of approximately $2.6 billion, is available for qualified bidders until July 11. Fannie Mae collaborated with Citigroup Global Markets in marketing the sale of reperforming loans.
Reperforming loans are mortgages that were previously delinquent for at least 90 days but on which the borrowers have resumed payment.
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.
“In addition, buyers must report on loss-mitigation outcomes,” Fannie Mae wrote in its announcement. “Any reporting requirements cease once a loan has been current for twelve consecutive months after the closing of the reperforming loan sale.”
