Fannie Mae Announces the Results of its Nineteenth Reperforming Loan Sale Transaction

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) announced the results of its nineteenth reperforming loan sale, encompassing the sale of 24,755 loans valued at $3.45 billion in unpaid principal balance (UPB). The transaction involves five pools, with notable bidders including DoubleLine Capital, PIMCO, JP Morgan, and Balbec Capital. Each pool exhibits different metrics, such as average loan sizes and weighted average note rates. The sale is set to close on May 14, 2021. This strategic move aims to enhance liquidity and support housing opportunities across the U.S.

Positive

• Successful sale of 24,755 loans valued at $3.45 billion in UPB, enhancing liquidity.
• Diverse participation from well-known bidders like DoubleLine, PIMCO, and JP Morgan.
• Reduction of non-performing loans, positively impacting financial stability.

Negative

• None.

WASHINGTON, April 6, 2021 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced the results of its nineteenth reperforming loan sale transaction. The deal, which was announced on March 9, 2021, included the sale of 24,755 loans totaling $3.45 billion in unpaid principal balance (UPB), divided into five pools. The winning bidders of the five pools for the transaction were DoubleLine Capital, LP (DoubleLine) for Pool 1; Pacific Investment Management Company LLC (PIMCO) for Pools 2 and 3; JP Morgan Mortgage Acquisition Corp. (Chase) for Pool 4; and LB-Igloo Series IV Trust (Balbec Capital, LP) for Pool 5. The transaction is expected to close on May 14, 2021. The pools were marketed with Citigroup Global Markets Inc. as advisor.

The loan pools awarded in this most recent transaction include:

• Pool 1: 3,917 loans with an aggregate UPB of $739,492,529; average loan size of $188,791; weighted average note rate of 3.74%; and weighted average broker's price opinion (BPO) loan-to-value ratio of 81%.
  
  
• Pool 2: 3,564 loans with an aggregate UPB of $740,448,266; average loan size of $207,758; weighted average note rate of 3.45%; and weighted BPO loan-to-value ratio of 60%.
  
  
• Pool 3: 6,911 loans with an aggregate UPB of $673,216,961; average loan size of $97,412; weighted average note rate of 4.96%; and weighted BPO loan-to-value ratio of 61%.
  
  
• Pool 4: 5,610 loans with an aggregate UPB of $670,793,934; average loan size of $119,571; weighted average note rate of 4.60%; and weighted BPO loan-to-value ratio of 63%.
  
  
• Pool 5: 4,753 loans with an aggregate UPB of $630,944,595; average loan size of $132,747; weighted average note rate of 4.42%; and weighted BPO loan-to-value ratio of 67%.

The cover bids, which are the second highest bids per pool, were 101.25% of UPB (69.72% of BPO) for Pool 1, 100.70% of UPB (55.74% of BPO) for Pool 2, 105.75% of UPB (44.65% of BPO) for Pool 3, 103.10% of UPB (50.11% of BPO) for Pool 4, and 95.50% of UPB (50.70% 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 people in America. 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 are the details of Fannie Mae's nineteenth reperforming loan sale?

Fannie Mae's nineteenth reperforming loan sale involved 24,755 loans totaling $3.45 billion in UPB, divided into five pools, with notable bidders including DoubleLine, PIMCO, and JP Morgan.

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

The closing date for Fannie Mae's nineteenth reperforming loan sale is set for May 14, 2021.

How many loans were sold in Fannie Mae's recent transaction?

Fannie Mae sold a total of 24,755 loans in its recent reperforming loan sale transaction.

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

The winning bidders for the loan sale were DoubleLine Capital for Pool 1, PIMCO for Pools 2 and 3, JP Morgan for Pool 4, and Balbec Capital for Pool 5.

What impact does the loan sale have on Fannie Mae's financial stability?

The sale of loans aims to reduce non-performing loans, which can enhance Fannie Mae's overall financial stability.