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

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) announced the results of its twentieth reperforming loan sale transaction, involving approximately 24,600 loans totaling $4.25 billion in unpaid principal balance. The winning bidders included PIMCO for Pools 1, 2, and 3, J.P. Morgan for Pool 4, and Great Ajax for Pool 5. The transaction's expected closure is on June 18, 2021. The cover bids reached up to 103.05% of UPB for some pools, reflecting strong interest. This transaction underscores Fannie Mae's efforts in enhancing housing finance opportunities.

Positive

• Successful sale of 24,600 loans totaling $4.25 billion in unpaid principal balance.
• Strong competition with cover bids reaching up to 103.05% of UPB, indicating robust market interest.

Negative

• None.

WASHINGTON, May 11, 2021 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced the results of its twentieth reperforming loan sale transaction. The deal, which was announced on April 8, 2021, included the sale of approximately 24,600 loans totaling $4.25 billion in unpaid principal balance (UPB), divided into five pools. The winning bidders of the five pools for the transaction were Pacific Investment Management Company LLC (PIMCO) for Pools 1, 2 and 3; J.P. Morgan Mortgage Acquisition Corp. (Chase) for Pool 4; and Great Ajax Operating Partnership, LP (Aspen) for Pool 5. The transaction is expected to close on June 18, 2021. The pools were marketed with Citigroup Global Markets Inc. as advisor.

The loan pools awarded in this most recent transaction include:

• Pool 1: 3,604 loans with an aggregate UPB of $773,103,188; average loan size of $214,513; weighted average note rate of 3.29%; and weighted average broker's price opinion (BPO) loan-to-value ratio of 82%.
   
• Pool 2: 3,630 loans with an aggregate UPB of $770,449,422; average loan size of $212,245; weighted average note rate of 3.12%; and weighted BPO loan-to-value ratio of 60%.
   
• Pool 3: 7,888 loans with an aggregate UPB of $1,191,043,442; average loan size of $150,994; weighted average note rate of 4.04%; and weighted BPO loan-to-value ratio of 61%.
   
• Pool 4: 4,721 loans with an aggregate UPB of $721,912,807; average loan size of $152,915; weighted average note rate of 4.03%; and weighted BPO loan-to-value ratio of 63%.
   
• Pool 5: 4,739 loans with an aggregate UPB of $790,446,866; average loan size of $166,796; weighted average note rate of 3.99%; and weighted BPO loan-to-value ratio of 65%.

The cover bids, which are the second highest bids per pool, were 99.04% of UPB (78.83% of BPO) for Pool 1, 99.57% of UPB (55.49% of BPO) for Pool 2, 103.05% of UPB (52.86% of BPO) for Pool 3, 100.54% of UPB (53.49% of BPO) for Pool 4 and 96.21% of UPB (53.24% 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: fanniemae.com | Twitter | Facebook | LinkedIn | Instagram | YouTube | Blog

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SOURCE Fannie Mae

FAQ

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

The latest reperforming loan sale by Fannie Mae is valued at $4.25 billion.

Who were the winning bidders in Fannie Mae's loan sale on May 11, 2021?

The winning bidders included PIMCO, J.P. Morgan, and Great Ajax.

When is the expected closing date for the loan sale transaction announced on May 11, 2021?

The expected closing date for the transaction is June 18, 2021.

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

The sale included approximately 24,600 loans.

What were the average loan sizes in the latest Fannie Mae loan pools?

The average loan sizes ranged from $150,994 to $214,513 across different pools.