A pair of transactions, one a closed sale and the other a loan offering, include more than $3 billion in Federal National Mortgage Association loans.
Bids are being taken on approximately 7,600 re-performing Fannie Mae loans that have an aggregate
unpaid principal balance of $1.65 billion.
The residential loans were previously delinquent. But payments on the mortgages
have since been brought current without any loan modifications.
“The terms of Fannie Mae’s re-performing 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 re-performing loan sale,” an announcement Tuesday from the Washington-based company stated. “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 re-performing loan sale.”
It’s the second such offering by the secondary lender. The first closed last year.
The sale is
being marketed in collaboration with Citigroup Global Markets Inc.
Bids are due on April 5.
Fannie additionally announced the sale of roughly 9,400 non-performing loans with an aggregate unpaid principal balance of $1.68 billion.
The government-controlled enterprise began marketing the loans last month.
The winning bidders were Igloo Series II Trust (Balbec Capital LP) for pool 1 and MTGLQ Investors LP (Goldman Sachs) for pools 2 through 4.
The transaction is expected to close on April 25.
Loans being sold are from Fannie’s investment portfolio, which was reported at $273 billion as of Jan. 31.
