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

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) has completed its twenty-first reperforming loan sale, selling approximately 12,100 loans totaling $1.58 billion in unpaid principal balance. The sale, conducted in four pools, was awarded to DLJ Mortgage Capital, Inc. and RCF II Loan Acquisition, LP. The winning bids represented varying percentages of the unpaid principal balance. The transaction is set to close on August 26, 2021. This move continues Fannie Mae's efforts to create housing opportunities while managing risks associated with its loan portfolio.

Positive

• Successful sale of approximately 12,100 loans worth $1.58 billion in unpaid principal balance.
• Diverse winning bidders, enhancing market participation and liquidity.

Negative

• Bids were below the market value with variances ranging from 39.50% to 49.24% of broker's price opinion.

WASHINGTON, July 15, 2021 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced the results of its twenty-first reperforming loan sale transaction. The deal, which was announced on June 10, 2021, included the sale of approximately 12,100 loans totaling $1.58 billion in unpaid principal balance (UPB), divided into four pools. The winning bidders of the four pools for the transaction were DLJ Mortgage Capital, Inc. (Credit Suisse) for Pools 1 and 3 and RCF II Loan Acquisition, LP (Pretium) for Pools 2 and 4. The transaction is expected to close on August 26, 2021. The pools were marketed with Citigroup Global Markets Inc. as advisor.

The loan pools awarded in this most recent transaction include:

• Pool 1: 4,449 loans with an aggregate UPB of $592,010,069; average loan size of $133,066; weighted average note rate of 4.35%; and weighted average broker's price opinion (BPO) loan-to-value ratio of 59%.

• Pool 2: 3,411 loans with an aggregate UPB of $460,024,607; average loan size of $134,865; weighted average note rate of 4.34%; and weighted BPO loan-to-value ratio of 61%.

• Pool 3: 3,448 loans with an aggregate UPB of $418,469,092; average loan size of $121,366; weighted average note rate of 4.51%; and weighted BPO loan-to-value ratio of 52%.

• Pool 4: 766 loans with an aggregate UPB of $110,858,344; average loan size of $144,724; weighted average note rate of 4.33%; and weighted BPO loan-to-value ratio of 63%.

The cover bids, which are the second highest bids per pool, were 105.07% of UPB (47.35% of BPO) for Pool 1, 100.63% of UPB (46.25% of BPO) for Pool 2, 106.51% of UPB (39.50% of BPO) for Pool 3, and 102.00% of UPB (49.24% of BPO) for Pool 4.

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 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 of Fannie Mae's loan sale on July 15, 2021?

Fannie Mae sold approximately $1.58 billion in unpaid principal balance.

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

The transaction is expected to close on August 26, 2021.

Who were the winning bidders in Fannie Mae's loan sale on July 15, 2021?

The winning bidders were DLJ Mortgage Capital, Inc. and RCF II Loan Acquisition, LP.

How many loans were included in Fannie Mae's twenty-first loan sale?

The sale included approximately 12,100 loans.

What is the stock ticker for Fannie Mae?

Fannie Mae trades under the ticker symbol FNMA.