WASHINGTON, March 14, 2017 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) today began marketing its second 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 7,600 loans, totaling $1.65 billion 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 April 5, 2017.
"Last year's reperforming loan sale pilot drew a great response from investors. We are pleased to offer our first sale of 2017 and expect a similar high level of investor interest," said Bob Ives, vice president of retained portfolio asset management, Fannie Mae. "We look forward to offering these pools as we continue to focus on reducing the size of our retained mortgage portfolio."
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. 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 within five years following the reperforming loan sale. In addition, buyers must report on loss mitigation outcomes. Any reporting requirements cease once a loan has been current for six consecutive months after the closing of the reperforming loan sale.
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.
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/fanniemae.
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SOURCE Fannie Mae