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

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) announced the outcome of its sixteenth reperforming loan sale on August 25, 2020, involving approximately 18,190 loans worth $3.37 billion in unpaid principal balance. The transaction, set to close on September 25, 2020, was awarded to various bidders across six pools, including DoubleLine Capital and JP Morgan. The pools showcased varied loan sizes, note rates, and loan-to-value ratios, with cover bids generally reflecting competitive interest. This strategic sale underscores Fannie Mae's commitment to enhancing housing finance.

Positive

• Successful sale of approximately 18,190 loans totaling $3.37 billion in unpaid principal balance.
• Diverse pool of bidders, indicating strong market interest and competition.

Negative

• None.

WASHINGTON, Aug. 25, 2020 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced the results of its sixteenth reperforming loan sale transaction. The deal, which was announced on July 28, 2020, included the sale of approximately 18,190 loans totaling $3.37 billion in unpaid principal balance (UPB), divided into six pools. The winning bidders of the six pools for the transaction were DoubleLine Capital LP (DoubleLine) for Pool 1, LSRMF Mortgage Holdings II, LLC (Lone Star) for Pool 2, DLJ Mortgage Capital, Inc. (Credit Suisse) for Pool 3, Great Ajax Operating Partnership LP (Aspen Capital) for Pools 4 and 5, and JP Morgan Mortgage Acquisition Corp. (Chase) for Pool 6. The transaction is expected to close on September 25, 2020. The pools were marketed with Citigroup Global Markets Inc. as advisor.

The loan pools awarded in this most recent transaction include:

• Pool 1: 2,448 loans with an aggregate unpaid principal balance of $553,556,523; average loan size $226,126; weighted average note rate 3.624%; weighted average broker's price opinion (BPO) loan-to-value ratio of 78%.
  
  
• Pool 2: 2,147 loans with an aggregate unpaid principal balance of $448,884,977; average loan size $209,075; weighted average note rate 3.267%; weighted BPO loan-to-value ratio of 74%.
  
  
• Pool 3: 4,409 loans with an aggregate unpaid principal balance of $711,583,814; average loan size $161,393; weighted average note rate 4.465%; weighted BPO loan-to-value ratio of 79%.
  
  
• Pool 4: 3,578 loans with an aggregate unpaid principal balance of $570,146,232; average loan size $159,348; weighted average note rate 4.129%; weighted BPO loan-to-value ratio of 77%.
  
  
• Pool 5: 2,481 loans with an aggregate unpaid principal balance of $518,217,233; average loan size $208,874; weighted average note rate 4.170%; weighted BPO loan-to-value ratio of 69%.
  
  
• Pool 6: 3,125 loans with an aggregate unpaid principal balance of $567,290,447; average loan size $181,533; weighted average note rate 3.905%; weighted BPO loan-to-value ratio of 83%.

The cover bids, which are the second highest bids per pool, were 99.19% of UPB (69.58% of BPO) for Pool 1, 97.25% of UPB (63.85% of BPO) for Pool 2, 100.19% of UPB (66.63% of BPO) for Pool 3, 93.55% of UPB (62.07% of BPO) for Pool 4, 91.51% of UPB (55.95% of BPO) for Pool 5 and 84.03% of UPB (60.17% of BPO) for Pool 6.

Interested bidders can register for ongoing announcements, training, and other information at https://www.fanniemae.com/portal/funding-the-market/npl/index.html. 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 involved in Fannie Mae's sixteenth reperforming loan sale?

The total amount involved in the sale was approximately $3.37 billion.

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

The loan sale transaction is expected to close on September 25, 2020.

How many loans were included in Fannie Mae's recent loan sale?

Fannie Mae's recent loan sale included approximately 18,190 loans.

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

Winning bidders included DoubleLine Capital LP, Lone Star, Credit Suisse, Aspen Capital, and JP Morgan.

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

The sale aims to enhance housing finance and support affordable housing opportunities.