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Fannie Mae marketing first sale of reperforming loans

FannieMae has started marketing a sale of reperforming loans — a pool of3,600 loans totaling $806 million in unpaid principal balance.

The move is part of the company's ongoing effort to reduce thesize of its retained mortgage portfolio. The sale is being marketed incollaboration with Citigroup Global Markets Inc.

Bids are due Nov. 1.

Reperforming loans are mortgages that were previouslydelinquent, but are performing again because payments on the mortgages havebecome current with or without the use of a loan modification plan.