Fannie Mae Announces Results of Seventeenth Reperforming Loan Sale Transaction

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) announced the results of its seventeenth reperforming loan sale on October 13, 2020. This transaction involved approximately 19,670 loans with a total unpaid principal balance of $2.78 billion, divided into five pools. Winning bidders include Athene Annuity, PIMCO, and Goldman Sachs. Each pool has unique characteristics such as loan sizes and weighted average note rates, with the transaction expected to close on November 20, 2020. Bidders can register for updates and information on specific pools available for purchase.

Positive

• Successful sale of 19,670 loans totaling $2.78 billion in unpaid principal balance.
• Involvement of reputable bidders like Athene Annuity, PIMCO, and Goldman Sachs.
• Variety in loan pools with different characteristics may attract diverse investor interest.

Negative

• None.

WASHINGTON, Oct. 13, 2020 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced the results of its seventeenth reperforming loan sale transaction. The deal, which was announced on September 10, 2020, included the sale of approximately 19,670 loans totaling $2.78 billion in unpaid principal balance (UPB), divided into five pools. The winning bidders of the five pools for the transaction were Athene Annuity and Life Company and Athene Annuity & Life Assurance Company (Athene) for Pool 1, Pacific Investment Management Company LLC (PIMCO) for Pools 2 & 3, and Goldman Sachs Mortgage Company (Goldman Sachs) for Pools 4 & 5. The transaction is expected to close on November 20, 2020. The pools were marketed with Citigroup Global Markets Inc. as advisor.

The loan pools awarded in this most recent transaction include:

• Pool 1: 3,690 loans with an aggregate unpaid principal balance of $596,327,102; average loan size $161,606; weighted average note rate 3.992%; weighted average broker's price opinion (BPO) loan-to-value ratio of 64%.

• Pool 2: 4,171 loans with an aggregate unpaid principal balance of $598,101,909; average loan size $143,395; weighted average note rate 4.477%; weighted BPO loan-to-value ratio of 67%.

• Pool 3: 2,953 loans with an aggregate unpaid principal balance of $529,598,000; average loan size $179,342; weighted average note rate 4.185%; weighted BPO loan-to-value ratio of 72%.

• Pool 4: 4,674 loans with an aggregate unpaid principal balance of $530,138,276; average loan size $113,423; weighted average note rate 4.659%; weighted BPO loan-to-value ratio of 65%.

• Pool 5: 4,178 loans with an aggregate unpaid principal balance of $527,104,220; average loan size $126,162; weighted average note rate 4.557%; weighted BPO loan-to-value ratio of 65%.

The cover bids, which are the second highest bids per pool, were 103.75% of UPB (52.88% of BPO) for Pool 1, 102.25% of UPB (54.27% of BPO) for Pool 2, 100.00% of UPB (60.39% of BPO) for Pool 3, 96.50% of UPB (47.39% of BPO) for Pool 4, and 93.55% of UPB (46.86% of BPO) for Pool 5.

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 helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of U.S. households. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit:
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SOURCE Fannie Mae

FAQ

What was the total amount of Fannie Mae's seventeenth reperforming loan sale?

Fannie Mae's seventeenth reperforming loan sale totaled approximately $2.78 billion.

When is the expected closing date for Fannie Mae's seventeenth reperforming loan sale?

The expected closing date for the transaction is November 20, 2020.

Who were the winning bidders for Fannie Mae's loan sale?

The winning bidders included Athene Annuity, PIMCO, and Goldman Sachs.

How many loans were included in the seventeenth reperforming loan sale?

The sale included approximately 19,670 loans.

What is the significance of Fannie Mae's reperforming loan sale?

The sale is significant as it demonstrates Fannie Mae's efforts to manage and reduce risk while providing liquidity to the market.