Want to buy a mortgage?
Fannie Mae announced Tuesday it is putting 18,300 reperforming loans up for sale as part of its ongoing effort to reduce the size of its mortgage portfolio.
Reperforming loans are loans that were previously delinquent but have reperformed for a period of time. Some of the loans may be up to 90 days delinquent. The terms of Fannie Mae’s reperforming 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 closing of the reperforming loan sale.
In addition, buyers must report on loss mitigation outcomes. Any reporting requirements cease once a loan has been current for twelve consecutive months after the closing of the reperforming loan sale.
The sale includes loans with an unpaid principal balance of approximately $3.4 billion and is available for purchase by qualified bidders. Interested bidders can register on the Whole Loans Sales page, and bids are due on August 18, 2020.