Basics of Fannie Mae Single-Family Reperforming Loan (RPL) Securitization
In 2016, Fannie Mae began to securitize single-family, fixed-rate reperforming loans (RPLs) into Mortgage Backed Securities (MBS). RPLs are conventional mortgage loans that are current but had been delinquent in the past and were subsequently removed from the original MBS pool. Prior to the RPL securitization program, reperforming loans remained in our retained portfolio until they prepaid or matured. RPLs may or may not have utilized a modification to become current. Fannie Mae's RPL MBS provide additional investment options for investors while increasing our balance sheet liquidity.