Fannie Mae Announces the Results of its Twenty-eighth Reperforming Loan Sale Transaction

Rhea-AI Summary

Fannie Mae (FNMA) has announced the results of its 28th reperforming loan sale, consisting of approximately 10,100 loans totaling $1.9 billion in unpaid principal balance. The transactions, divided into five pools, have winning bidders including PIMCO and JP Morgan. The deal is expected to close by February 23, 2023. Each pool showcases a mix of loan sizes, weighted average note rates, and loan-to-value ratios. The loan sale requires buyers to provide loss mitigation options for borrowers at risk of re-defaulting within five years. This initiative supports Fannie Mae's mission to facilitate homeownership access.

Positive

• Total sale of approximately 10,100 loans valued at $1.9 billion.
• Involvement of reputable bidders such as PIMCO and JP Morgan.
• Emphasis on loss mitigation options for borrowers enhances quality of service.

Negative

• Loans involved are categorized as reperforming, indicating prior delinquency.

WASHINGTON, Jan. 17, 2023 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced the results of its twenty-eighth reperforming loan sale transaction. The deal, announced on October 6, 2022, included the sale of approximately 10,100 loans totaling $1.9 billion in unpaid principal balance (UPB), divided into five pools. The winning bidders were Pacific Investment Management Company LLC (PIMCO) for Pools 1, 2 and 3, JP Morgan Mortgage Acquisition Corp. (Chase) for Pool 4, and PIF Onshore XXXV LP for Pool 5, each awarded individually. The transaction is expected to close by February 23, 2023. The pools were marketed with Citigroup Global Markets Inc. as advisor

The loan pools awarded in this most recent transaction include:

• Pool 1: 1,433 loans with an aggregate UPB of $277,146,137; average loan size of $193,403; weighted average note rate of 3.65%; and weighted average broker's price opinion (BPO) loan-to-value ratio of 48%.
• Pool 2: 1,863 loans with an aggregate UPB of $358,187,845; average loan size of $192,264; weighted average note rate of 3.69 %; and weighted average broker's price opinion (BPO) loan-to-value ratio of 53%.
• Pool 3: 3,709 loans with an aggregate UPB of $714,905,308; average loan size of $192,749; weighted average note rate of 3.66%; and weighted BPO loan-to-value ratio of 52%.
• Pool 4: 1,525 loans with an aggregate UPB of $274,843,043; average loan size of $180,225; weighted average note rate of 3.78%; and weighted BPO loan-to-value ratio of 54%.
• Pool 5: 1,562 loans with an aggregate UPB of $275,891,708; average loan size of $176,627; weighted average note rate of 3.87%; and weighted BPO loan-to-value ratio of 52%.

The cover bids, which are the second highest bids per pool, were 86.01% of UPB (34.93% of BPO) for Pool 1, 83.50% of UPB (35.67% of BPO) for Pool 2, 79.58% of UPB (33.91% of BPO) for Pool 3, 79.55% of UPB (35.42% of BPO) for Pool 4, and 81.25% of UPB (35.26% of BPO) for Pool 5. 

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

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SOURCE Fannie Mae

FAQ

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

The latest loan sale by Fannie Mae totals approximately $1.9 billion.

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

Winning bidders included PIMCO for Pools 1, 2, and 3, and JP Morgan for Pool 4.

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

The transaction is expected to close by February 23, 2023.

What are reperforming loans and how do they affect Fannie Mae?

Reperforming loans are those that have been delinquent but have since returned to performing status; they reflect potential risks for Fannie Mae.

What loss mitigation requirements does Fannie Mae have for buyers?

Buyers are required to offer loss mitigation options to borrowers who may re-default within five years.