Home / Daily Dose / Fannie Mae Announces 17th Sale of Reperforming Loans
Print This Post Print This Post

Fannie Mae Announces 17th Sale of Reperforming Loans

For about a decade GSE Fannie Mae has been carrying delinquent mortgages that have started performing again (that is, payments on the mortgages have become current with or without the assistance of modification of loan terms). Fannie Mae packages and markets the reperforming loans to investors, usually through a money center bank.

Fannie Mae last week began marketing its seventeenth sale of reperforming loans, the GSE said in a news release, "as part of the company's ongoing effort to reduce the size of its retained mortgage portfolio."

The sale consists of approximately 19,800 loans, having an unpaid principal balance of approximately $2.8 billion, and is available for purchase by qualified bidders. Interested bidders can register on the Whole Loans Sales page.

This sale of reperforming loans is being marketed in collaboration with Citigroup Global Markets, Inc. Bids are due October 6.

Some of the reperforming loans may be up to 90 days delinquent. 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 closing of the reperforming loan sale.

In addition, buyers must report on loss mitigation outcomes. Any reporting requirements cease once a loan has been current for twelve consecutive months after the closing of the reperforming loan sale.

Interested bidders can register here for ongoing announcements, training, and other information. Fannie Mae will also post information about specific pools available for purchase on that page.

Results from the 16th sale of such loans are reported here.

About Author: Christina Hughes Babb

Christina Hughes Babb is a reporter for DS News and MReport. A graduate of Southern Methodist University, she has been a reporter, editor, and publisher in the Dallas area for more than 15 years. During her 10 years at Advocate Media and Dallas Magazine, she published thousands of articles covering local politics, real estate, development, crime, the arts, entertainment, and human interest, among other topics. She has won two national Mayborn School of Journalism Ten Spurs awards for nonfiction, and has penned pieces for Texas Monthly, Salon.com, Dallas Observer, Edible, and the Dallas Morning News, among others.

Check Also

FHFA Seeks Input on Short-Term Rentals

Fannie Mae and Freddie Mac's updated policies for backing "vacation" and "transient" housing reportedly have caused "industry confusion," which the agency aims to remedy.

Your Daily Dose of DS News

Get the news you need, when you need it. Subscribe to the Daily Dose of DS News to receive each day’s most important default servicing news and market information, absolutely free of charge.