Government-sponsored enterprise (GSE) Fannie Mae is looking to sell another pool of reperforming loans (RPLs) as part of the company’s ongoing effort to reduce the size of its retained mortgage portfolio.
The pool of approximately 13,700 loans, totaling $3.036 billion in unpaid principal balance (UPB), is available for purchase by qualified bidders. Bids are due on June 5.
As with all of the GSEs’ nonperforming (NPL) and RPL sales, the buyer is required to offer loss mitigation options, including modifications, to distressed borrowers should they default within the first five years of the portfolio purchase.
Buyers must also report on loss mitigation outcomes. Any reporting requirements cease once a loan has been current for six consecutive months.
In addition to the RPLs being offered, Fannie Mae is also looking to sell three larger pools of NPLs, including the company’s seventh and eighth Community Impact Pools, which are smaller pools of loans that are geographically focused and high occupancy.
These loans are marketed to encourage participation by nonprofit organizations, minority- and women-owned businesses, and smaller investors.
The three pools of NPLs comprise approximately 3,600 loans totaling $613 million in UPB.
The Community Impact Pools include approximately 135 loans, focused in the New York and New Jersey areas, and total about $34.47 million in UPB.
Bids are due on the three larger pools on June 1 and on the Community Impact Pools on June 14.