More than $5 billion in residential loans are being moved out of the mortgage investment portfolio of the Federal National Mortgage Association. The loans are nonperforming and reperforming.
One of two transactions announced Thursday by Fannie Mae includes an offering of approximately 10,780 nonperforming single-family loans with a collective unpaid principal balance of $1.98 billion.
The successful bidder will be required to pursue sustainable loss mitigation options for borrowers. If the loans wind up in foreclosure, the real estate owned must be marketed to owner-occupants and non-profits exclusively before offering them to investors.
Source: Mortgage Daily