Fannie Mae Announces Sale of Reperforming Loans
Rhea-AI Summary
Fannie Mae (OTCQB: FNMA) has announced the sale of reperforming loans as part of its strategy to reduce its retained mortgage portfolio. The sale includes approximately 8,721 loans with an unpaid principal balance of about $1.429 billion. Qualified bidders can register for the sale, which is being marketed in collaboration with Citigroup Global Markets, Inc. Bids are due on October 29, 2024.
The sale terms require buyers to offer loss mitigation options to borrowers who may re-default within five years after the sale closing. Purchasers must honor existing loss mitigation efforts and offer a waterfall of options, including loan modifications with potential principal forgiveness, before initiating foreclosure.
Positive
- Reduction of retained mortgage portfolio size
- Sale of 8,721 loans with $1.429 billion unpaid principal balance
- Collaboration with Citigroup Global Markets, Inc. for marketing
Negative
- None.
News Market Reaction 1 Alert
On the day this news was published, FNMA declined NaN%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
The sale consists of approximately 8,721 loans, having an unpaid principal balance of approximately
This sale of reperforming loans is being marketed in collaboration with Citigroup Global Markets, Inc. Bids are due on October 29, 2024.
Reperforming loans are loans that have been or are currently delinquent but have reperformed for a period of time. The terms of Fannie Mae's reperforming loan sale require the buyer to offer loss mitigation options to any borrower who may re-default within five years following the closing of the reperforming loan sale. All purchasers are required to honor any approved or in-process loss mitigation efforts at the time of sale, including forbearance arrangements and loan modifications. In addition, purchasers must offer delinquent borrowers a waterfall of loss mitigation options, including loan modifications, which may include principal forgiveness, prior to initiating foreclosure on any loan.
Interested bidders can register for ongoing announcements, training, and other information here. Fannie Mae will also post information about specific pools available for purchase on that page.
About Fannie Mae
Fannie Mae advances equitable and sustainable access to homeownership and quality, affordable rental housing for millions of people across America. We enable the 30-year fixed-rate mortgage and drive responsible innovation to make homebuying and renting easier, fairer, and more accessible. To learn more, visit:
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https://www.fanniemae.com/news
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SOURCE Fannie Mae
FAQ
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