More than $800 million in previously delinquent home loans owned by the Federal National Mortgage Association that are now performing are for sale.
In all, a pool of 3,600 residential loans with an aggregate principal balance of $806 million is being auctioned off by the Washington-based organization.
The reperforming mortgages
have been delinquent in the past but have since become current. In some cases, loans were brought current with modifications.
“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 after the sale, and prohibit the buyer from ‘walking away’ from any home that might become vacant,” the secondary lender stated.
The loans are currently held in Fannie Mae’s investment portfolio, which was last reported at $311 billion as of Aug. 31.
The auction of FNMA 2016-RPL1 is being marketed
in collaboration with Citigroup Global Markets Inc.
Qualified bidders have until Nov. 1 to make a bid.
