Fannie Mae has announced its 21st sale of reforming loans, a move that is part of GSE’s ongoing efforts to reduce the size of its retained mortgage portfolio.
The sale includes approximately 12,200 loans with an unpaid principal of approximately $ 1.6 billion. The deal, marketed in collaboration with Citigroup Global Markets, is available for sale to qualified bidders until July 8, 2021.
Reperforming loans are mortgages that were previously in default but have recovered for a period of time. Under the terms of sale, buyers must offer any borrower who may default again within five years of the completion of the reforming loan sale, loss mitigation options that are sustainable. Buyers must also report loss mitigation results until a loan becomes valid for 12 consecutive months.
According to the Mortgage Bankers Association, 2.1 million homeowners are still in Forbearance plans as of May 30th. The proportion of Fannie Mae and Freddie Mac loans decreased 1 basis point to 2.18%.