Fannie Mae Announces Results of Recent Reperforming Loan Sale

Rhea-AI Summary

On August 1, 2022, Fannie Mae (OTCQB: FNMA) announced the successful sale of approximately 5,460 reperforming loans with a total unpaid principal balance of $663.3 million to JP Morgan Mortgage Acquisition Corp. This transaction, set to close on August 26, 2022, aims to support loss mitigation efforts for borrowers at risk of re-defaulting. The loans feature an average size of $121,476 and a weighted average note rate of 4.49%. The sale reflects a weighted average bid in the low 90s as a percentage of UPB.

Positive

• Successful sale of 5,460 reperforming loans with UPB of $663.3 million.
• Transaction includes measures for loss mitigation for borrowers.

Negative

• None.

WASHINGTON, Aug. 1, 2022 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced the results of a recent reperforming loan sale. The sale of approximately 5,460 loans totaling $663.3 million in unpaid principal balance (UPB) was awarded to JP Morgan Mortgage Acquisition Corp. (Chase). The transaction is expected to close on August 26, 2022. The pool was marketed with Citigroup Global Markets Inc. as advisor.

The loan pool awarded in this most recent transaction includes:

• 5,460 loans with an aggregate UPB of $663,261,375; average loan size of $121,476; weighted average note rate of 4.49%; and weighted average broker's price opinion loan-to-value ratio of 48%.

The approximate weighted average bid, as a percentage of UPB, was in the low 90s for this pool. 

Reperforming loans are loans that have been or are currently delinquent but have reperformed for a period of time. The terms of Fannie Mae's reperforming loan sale require the buyer to offer loss mitigation options to any borrower who may re-default within five years following the closing of the reperforming loan sale. All purchasers are required to honor any approved or in-process loss mitigation efforts at the time of sale, including forbearance arrangements and loan modifications. In addition, purchasers must offer delinquent borrowers a waterfall of loss mitigation options, including loan modifications, which may include principal forgiveness, prior to initiating foreclosure on any loan.

Interested bidders can register for ongoing announcements, training, and other information here. Fannie Mae will also post information about specific pools available for purchase on that page.

About Fannie Mae
Fannie Mae advances equitable and sustainable access to homeownership and quality, affordable rental housing for millions of people across America. We enable the 30-year fixed-rate mortgage and drive responsible innovation to make homebuying and renting easier, fairer, and more accessible. To learn more, visit: fanniemae.com | Twitter | Facebook | LinkedIn | Instagram | YouTube | Blog

Fannie Mae Newsroom
https://www.fanniemae.com/news

Photo of Fannie Mae
https://www.fanniemae.com/resources/img/about-fm/fm-building.tif

Fannie Mae Resource Center
1-800-2FANNIE

View original content:https://www.prnewswire.com/news-releases/fannie-mae-announces-results-of-recent-reperforming-loan-sale-301596819.html

SOURCE Fannie Mae

FAQ

What are the details of Fannie Mae's recent loan sale?

Fannie Mae sold approximately 5,460 reperforming loans totaling $663.3 million in unpaid principal balance to JP Morgan, expected to close on August 26, 2022.

What is the average loan size in Fannie Mae's recent sale?

The average loan size in the recent sale is $121,476.

What is the weighted average note rate for the loans sold by Fannie Mae?

The weighted average note rate for the loans sold is 4.49%.

How will Fannie Mae support borrowers at risk of re-defaulting?

Fannie Mae's sale includes requirements for purchasers to offer loss mitigation options to borrowers who may re-default within five years.

What was the approximate weighted average bid percentage for the loan pool?

The approximate weighted average bid for the loan pool was in the low 90s as a percentage of the unpaid principal balance.