Fannie Mae Announces Results of Twenty-fourth Reperforming Loan Sale Transaction

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) reported the outcome of its 24th reperforming loan sale, involving 7,970 loans totaling $1.3 billion in unpaid principal balance (UPB). The pools were sold to Pacific Investment Management Company LLC (PIMCO) and MCLP Asset Company (Goldman Sachs) with closing expected on April 18, 2022. The loans were divided into three pools, each with specific characteristics including average loan sizes and weighted note rates. Buyers must adhere to loss mitigation options for any borrowers at risk of re-defaulting within five years.

Positive

• Successful sale of 7,970 reperforming loans totaling $1.3 billion UPB.
• Bidders included reputable firms like PIMCO and Goldman Sachs.
• Compliance with loss mitigation options may foster borrower support.

Negative

• None.

WASHINGTON, March 8, 2022 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced the results of its twenty-fourth reperforming loan sale transaction. The deal, which was announced on February 8, 2022, included the sale of 7,970 loans totaling $1.3 billion in unpaid principal balance (UPB), divided into three pools. The winning bidders of the three pools for the transaction were Pacific Investment Management Company LLC (PIMCO) for Pools 1 and 2 and MCLP Asset Company, Inc. (Goldman Sachs) for Pool 3, each awarded individually. The transaction is expected to close on April 18, 2022. The pools were marketed with Citigroup Global Markets Inc. as advisor.

The loan pools awarded in this most recent transaction include:

• Pool 1: 2,698 loans with an aggregate UPB of $414,932,397; average loan size of $153,793; weighted average note rate of 4.00%; and weighted average broker's price opinion (BPO) loan-to-value ratio of 51%.
• Pool 2: 3,460 loans with an aggregate UPB of $617,353,072; average loan size of $178,426; weighted average note rate of 4.05%; and weighted BPO loan-to-value ratio of 56%.
• Pool 3: 1,812 loans with an aggregate UPB of $275,231,825; average loan size of $151,894; weighted average note rate of 4.18%; and weighted BPO loan-to-value ratio of 55%.

The cover bids, which are the second highest bids per pool, were 100.08% of UPB (40.26 of BPO) for Pool 1, 99.05% of UPB (44.54% of BPO) for Pool 2, and 96.31% of UPB (42.49% of BPO) for Pool 3.  

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 to download multimedia:https://www.prnewswire.com/news-releases/fannie-mae-announces-results-of-twenty-fourth-reperforming-loan-sale-transaction-301497651.html

SOURCE Fannie Mae

FAQ

What is the total unpaid principal balance of Fannie Mae's reperforming loan sale?

The total unpaid principal balance (UPB) of the reperforming loan sale is $1.3 billion.

Who were the winning bidders for the most recent Fannie Mae loan sale?

Pacific Investment Management Company LLC (PIMCO) won Pools 1 and 2, while MCLP Asset Company (Goldman Sachs) secured Pool 3.

When is the closing date for Fannie Mae's 24th reperforming loan sale?

The transaction is expected to close on April 18, 2022.

What are the average loan sizes in Fannie Mae's loan sale pools?

The average loan sizes are $153,793 for Pool 1, $178,426 for Pool 2, and $151,894 for Pool 3.

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

The weighted average note rates are 4.00% for Pool 1, 4.05% for Pool 2, and 4.18% for Pool 3.