Fannie Mae has started to market a pool of reperforming loans for sale to qualified bidders.
The pool has about 11,000 loans with about $2.5 billion in unpaid principal balance. Bids are due Sept. 6. The sale is being marketed in collaboration with Citigroup Global Markets Inc.
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 redefault within five years after the loan sale. Additionally, buyers must report on loss mitigation outcomes. Any reporting requirements stop once a loan has been current for six consecutive months after the reperforming loan sale closes.