The stock price of Fannie Mae (OTCQB: FNMA) rose 8.56% to $2.41 by yesterday’s close. Contrary to its average monthly volume of 2.96M, trading volume for Fannie Mae stock stood at 9.68M on the day. A focus on improving its mortgage portfolio contributed to the rise in FNMA stock.
What were those efforts?
Millions of people in the United States could not afford a home if it wasn’t for Fannie Mae as it makes the 30-year fixed-rate mortgage and affordable rental housing possible for them. Families all across the country benefit from housing opportunities created by FNMA, in partnership with lenders. In order to make home purchases easier, while reducing costs and risks, FNMA drives positive changes in home finance.
With the ongoing effort to reduce the size of its retained portfolio, Fannie Mae is currently marketing its twentieth sale of reperforming loans, announced FNMA in a press release last day.
- Qualified bidders can buy the approximately 24,900 loans, which have an unpaid principal balance of approximate $4.3 billion.
- Bids are due on May 4, 2021, for this sale of performing loans, which is being marketed in collaboration with Citigroup Global Markets, Inc.
- Upon closing a FNMA reperforming loan deal, the buyer must make loss mitigation options available to any borrower who re-defaults within five years of closing the deal.
- Also, buyers have to report on their loss mitigation efforts.
- Any reporting requirements cease once a loan has been current for twelve consecutive months after the closing of the reperforming loan sale.
How do FNMA’s marketing campaigns work?
The term reperforming loans refers to loans that were once delinquent and were brought current again over a certain period of time. By registering on the Fannie Mae (FNMA)’s website, bidders will be kept informed about current announcements, training, and other details. On that page, FNMA also posts information regarding the individual pools available to purchase.