Fannie Mae recently began marketing its eleventh sale of reperforming loans as part of the company's ongoing effort to reduce the size of its retained mortgage portfolio. The sale consists of approximately 21,400 loans, having an unpaid principal balance of approximately $3.3 billion, and is available for purchase by qualified bidders.
Fannie Mae notes that 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 sale includes around 21,400 reperforming loans and $3.3 billion in unpaid principal balance, divided across four pools: Pool 1 is approximately $566.7 million in UPB, Pool 2 is approximately $997.9 million in UPB, Pool 3 is approximately $999.2 million in UPB and Pool 4 is approximately $734.7 million in UPB. The pools are to be serviced by Mr. Cooper.
The Data Room for bidders opened on April 15, and bidding begins on May 7 with bids being awarded on May 8.
Meanwhile, Freddie Mac recently announced an approximate $363 million non-performing loan (NPL) transaction, an auction of seasoned non-performing residential first lien whole loans held in Freddie Mac’s mortgage-related investments portfolio.
The NPLs are being marketed via four pools: three Standard Pool Offerings (SPO) and one Extended Timeline Pool Offering (ETPO), which the GSE notes targets participation by smaller investors, including non-profits and Minority, Women, Disabled, LGBT, Veteran or Service-Disabled Veteran-Owned Businesses. SPO pools are generally large, geographically diverse pools, although they may be geographically concentrated. ETPO pools are generally smaller in size, and may or may not be geographically concentrated. The marketing period will be approximately two weeks longer than the typical marketing period for SPOs.
Bank of America Merrill Lynch, and First Financial Network, Inc., a woman-owned business, serve as Freddie Mac’s advisors on the transaction. Find out how to become a bidder here.
Bidders interested in Fannie Mae’s reperforming loan sale can register here.