More than $2 billion in reperforming government-sponsored enterprise mortgages are being marketed for sale to the highest bidder.
The offering is for approximately 11,000 reperforming residential
loans that have an aggregate unpaid principal balance of $2.5 billion.
The mortgages in the offering were previously delinquent. But they are now performing again either due to bringing the payments current or modifications.
Fannie Mae announced the offering Thursday.
“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,” the statement said. “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.”
Washington-based Fannie is selling the loans from its investment portfolio, which was last reported at $256 billion as of June 30.
The sale is
being marketed in collaboration with Citigroup Global Markets Inc.
Bids for the loans are due by Sept. 6.
