1. Fannie Mae is selling 3,141 reperforming loans worth $559.8 million. 2. The sale aims to reduce Fannie Mae's retained mortgage portfolio size. 3. Bids for the loans are due by March 26, 2025. 4. Buyers must provide loss mitigation options to borrowers to prevent foreclosure. 5. Collaboration with Citigroup Global Markets highlights the sale's significance.
The sale indicates reducing portfolio size and improving liquidity, potentially enhancing investor confidence, similar to past successful sales by FNMA that stabilized stock prices. Recent similar efforts have led to increases in FNMA's valuations.
The ongoing effort to shrink its mortgage portfolio can attract investors and indirectly boost confidence in FNMA's management and operational strategy. This aligns with FNMA's mission to stabilize the housing market.
Immediate impact observed as bids are due soon, which may influence FNMA's stock price. Historical precedents show quick market reactions to FNMA's loan sales.
WASHINGTON, March 4, 2025 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today began marketing its most recent sale of reperforming loans as part of the company's ongoing effort to reduce the size of its retained mortgage portfolio.
The sale consists of approximately 3,141 loans, having an unpaid principal balance of approximately $559.8 million, and is available for purchase by qualified bidders. Interested bidders can register here.
This sale of reperforming loans is being marketed in collaboration with Citigroup Global Markets, Inc. Bids are due on March 26, 2025.
Reperforming loans are loans that have been or are currently delinquent but have reperformed for a period of time. The terms of Fannie Mae's reperforming loan sale require the buyer to offer loss mitigation options to any borrower who may re-default within five years following the closing of the reperforming loan sale. All purchasers are required to honor any approved or in-process loss mitigation efforts at the time of sale, including loan modifications. In addition, purchasers must offer delinquent borrowers a waterfall of loss mitigation options, including loan modifications, which may include principal forgiveness, prior to initiating foreclosure on any loan.
Interested bidders can register for ongoing announcements, training, and other information here. Fannie Mae will also post information about specific pools available for purchase on that page.