Fannie Mae Announces the Results of Its Twenty-second Reperforming Loan Sale Transaction

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) reported the results of its twenty-second reperforming loan sale, involving approximately 18,800 loans totaling $2.14 billion in unpaid principal balance (UPB). The sale, announced on August 12, 2021, was awarded to Pacific Investment Management Company (PIMCO) and is set to close on October 15, 2021. The loans are divided into four pools, with varying loan sizes, note rates, and loan-to-value ratios, and come with buyer requirements to provide loss mitigation options to borrowers.

Positive

• Successful sale of 18,800 loans totaling $2.14 billion in UPB.
• PIMCO as a strong bidder, indicating confidence in the assets.
• Structured loss mitigation options for borrowers to prevent foreclosure.

Negative

• None.

WASHINGTON, Sept. 16, 2021 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced the results of its twenty-second reperforming loan sale transaction. The deal, which was announced on August 12, 2021, included the sale of approximately 18,800 loans totaling $2.14 billion in unpaid principal balance (UPB), divided into four pools. The winning bidder of the four pools for the transaction was Pacific Investment Management Company LLC (PIMCO) for Pools 1, 2, 3, and 4, each awarded individually. The transaction is expected to close on October 15, 2021. The pools were marketed with Citigroup Global Markets Inc. as advisor.

The loan pools awarded in this most recent transaction include:

• Pool 1: 3,013 loans with an aggregate UPB of $590,685,058; average loan size of $196,046; weighted average note rate of 3.93%; and weighted average broker's price opinion (BPO) loan-to-value ratio of 59%.
• Pool 2: 6,793 loans with an aggregate UPB of $531,292,385; average loan size of $78,212; weighted average note rate of 4.88%; and weighted BPO loan-to-value ratio of 49%.
• Pool 3: 4,997 loans with an aggregate UPB of $519,169,942; average loan size of $103,896; weighted average note rate of 4.65%; and weighted BPO loan-to-value ratio of 58%.
• Pool 4: 4,004 loans with an aggregate UPB of $497,509,865; average loan size of $124,253; weighted average note rate of 4.41%; and weighted BPO loan-to-value ratio of 60%.

The cover bids, which are the second highest bids per pool, were 104.65% of UPB (52.53% of BPO) for Pool 1, 108.66% of UPB (33.89% of BPO) for Pool 2, 106.125% of UPB (43.82% of BPO) for Pool 3, and 103.25% of UPB (47.29% of BPO) for Pool 4.  

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 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 was the total value of Fannie Mae's recent loan sale?

The recent loan sale by Fannie Mae was valued at approximately $2.14 billion.

Who won the bid in Fannie Mae's 22nd reperforming loan sale?

Pacific Investment Management Company (PIMCO) won the bid in Fannie Mae's 22nd reperforming loan sale.

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

The closing date for the Fannie Mae loan sale transaction is set for October 15, 2021.

How many loans were included in the Fannie Mae loan sale?

The Fannie Mae loan sale included approximately 18,800 loans.

What are reperforming loans according to Fannie Mae?

Reperforming loans are loans that have been or are currently delinquent but have reperformed for a period of time.