Nearly $2 billion in residential loans that were previously classified as delinquent are being offered for sale to the highest bidder.
The proposed loan sale
is for 9,400 Federal National Mortgage Association loans with a collective unpaid principal balance of $1.97 billion.
Loans being offered for sale had previously been delinquent but are now reperforming again.
Loan modifications were involved on some of the mortgages.
Fannie Mae announced the offering on Tuesday.
The successful purchaser
will be required to offer sustainable loss mitigation options to any borrower who re-defaults within five years of the loan sale’s closing.
In addition, the buyer needs to report on loss mitigation outcomes, though the reporting will cease after the loan is current for 12 consecutive months.
It’s the sixth reperforming loan sale by the Washington-based organization.
The sale is part of Fannie’s ongoing effort to reduce the size of its retained mortgage portfolio. Fannie reported an investment portfolio of $235 billion as of Jan. 31.
The sale is being
marketed in collaboration with Citigroup Global Markets Inc.
Bids are due from qualified bidders by April 4.
