Fannie Mae Announces Sale of Reperforming Loans

Core Viewpoint - Fannie Mae is actively marketing a sale of reperforming loans to reduce its retained mortgage portfolio, consisting of approximately 3,058 loans with an unpaid principal balance of about $560.5 million [1]. Group 1: Sale Details - The sale of reperforming loans is being conducted in collaboration with Citigroup Global Markets, Inc., with bids due by September 4, 2025 [2]. - The loans being sold are classified as reperforming, meaning they have been or are currently delinquent but have shown a period of reperformance [3]. Group 2: Buyer Obligations - Buyers of the reperforming loans must provide loss mitigation options to borrowers who may re-default within five years of the sale's closing [3]. - All purchasers are required to honor any approved or in-process loss mitigation efforts at the time of sale, including loan modifications [3]. - Purchasers must offer a range of loss mitigation options, including loan modifications that may involve principal forgiveness, before initiating foreclosure on any loan [3].