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

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) announced the results of its twenty-seventh reperforming loan sale, comprising approximately 6,060 loans totaling $986.4 million in unpaid principal balance (UPB). The transaction, which will close on October 26, 2022, features three loan pools awarded to distinct bidders: PIMCO, Credit Suisse, and Barclays. Notably, Pool 1 consists of 1,790 loans with a UPB of $337.8 million, while Pool 2 has 2,217 loans valued at $338.9 million, and Pool 3 includes 2,055 loans worth $309.7 million. The sale emphasizes loss mitigation options for borrowers.

Positive

• Successfully sold approximately 6,060 reperforming loans totaling $986.4 million in UPB.
• Secured participation from reputable bidders like PIMCO, Credit Suisse, and Barclays.
• Transaction expected to close on October 26, 2022, ensuring liquidity.
• Emphasis on borrower protection through loss mitigation options, enhancing corporate responsibility.

Negative

• None.

WASHINGTON, Sept. 15, 2022 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced the results of its twenty-seventh reperforming loan sale transaction. The deal, announced on August 11, 2022, included the sale of approximately 6,060 loans totaling $986.4 million in unpaid principal balance (UPB), divided into three pools. The winning bidders were Pacific Investment Management Company LLC (PIMCO) for Pool 1, DLJ Mortgage Capital, Inc. (Credit Suisse) for Pool 2, and Sutton Funding, LLC (Barclays) for Pool 3, each awarded individually. The transaction is expected to close by October 26, 2022. The pools were marketed with Citigroup Global Markets Inc. as advisor.

The loan pools awarded in this most recent transaction include:

• Pool 1: 1,790 loans with an aggregate UPB of $337,792,657; average loan size of $188,711; weighted average note rate of 3.65%; and weighted average broker's price opinion (BPO) loan-to-value ratio of 50%.
  
  
• Pool 2: 2,217 loans with an aggregate UPB of $338,897,140; average loan size of $152,863; weighted average note rate of 4.04 %; and weighted average broker's price opinion (BPO) loan-to-value ratio of 60%.
  
  
• Pool 3: 2,055 loans with an aggregate UPB of $309,709,953; average loan size of $150,710; weighted average note rate of 4.08%; and weighted BPO loan-to-value ratio of 55%.

The cover bids, which are the second highest bids per pool, were 85.56% of UPB (36.86% of BPO) for Pool 1, 87.50% of UPB (40.17% of BPO) for Pool 2, and 85.42% of UPB (38.36% of BPO) for Pool 3. 

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: 
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SOURCE Fannie Mae

FAQ

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

Fannie Mae's recent loan sale totaled approximately $986.4 million in unpaid principal balance.

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

The winning bidders included PIMCO for Pool 1, Credit Suisse for Pool 2, and Barclays for Pool 3.

When is Fannie Mae's loan sale transaction expected to close?

The transaction is expected to close by October 26, 2022.

What are reperforming loans and how do they relate to Fannie Mae?

Reperforming loans are loans that were previously delinquent but have since resumed regular payments; Fannie Mae sells these loans as part of its portfolio management strategy.

What is the average loan size in Fannie Mae's latest loan sale?

The average loan size varies by pool, with Pool 1 at $188,711, Pool 2 at $152,863, and Pool 3 at $150,710.