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

Rhea-AI Summary

On July 15, 2022, Fannie Mae (OTCQB: FNMA) announced the successful sale of approximately 4,390 reperforming loans, totaling $889.75 million in unpaid principal balance. This transaction, finalized on June 9, 2022, involves two awarded pools with Pool 1 sold to PIMCO and Pool 3 sold to Kah Capital, with Pool 2 remaining unsold. The deal is set to close on August 19, 2022. Reperforming loans require buyers to provide loss mitigation options for borrowers, ensuring support to prevent re-defaults.

Positive

• Successful sale of 4,390 reperforming loans totaling $889.75 million.
• Strong interest from bidders, with competitive cover bids of 83.14% and 86.55% of UPB.
• PIMCO and Kah Capital awarded the loan pools, indicating confidence in FNMA's offerings.

Negative

• Pool 2 received no bids, indicating potential challenges in market interest.

WASHINGTON, July 15, 2022 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced the results of its twenty-sixth reperforming loan sale transaction. The deal, announced on June 9, 2022, included the sale of approximately 4,390 loans totaling $889.75 million in unpaid principal balance (UPB), divided into two pools. The winning bidders of Pool 1 and Pool 3, respectively, were Pacific Investment Management Company LLC (PIMCO) and Kah Capital Mortgage Credit Master Fund II, LP (Kah Capital), each awarded individually. Pool 2 was not awarded. The transaction is expected to close on August 19, 2022. The pools were marketed with Citigroup Global Markets Inc. as advisor.

The loan pools awarded in this most recent transaction include:

• Pool 1: 1,981 loans with an aggregate UPB of $523,518,876; average loan size of $264,270; weighted average note rate of 3.56%; and weighted average broker's price opinion (BPO) loan-to-value ratio of 54%.
• Pool 3: 2,411 loans with an aggregate UPB of $366,227,099; average loan size of $151,898; weighted average note rate of 4.11%; and weighted BPO loan-to-value ratio of 53%.

The cover bids, which are the second highest bids per pool, were 83.14% of UPB (38.39% of BPO) for Pool 1 and 86.55% of UPB (34.53% 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 were the results of Fannie Mae's reperforming loan sale on July 15, 2022?

Fannie Mae announced the sale of about 4,390 loans totaling $889.75 million, with Pool 1 awarded to PIMCO and Pool 3 to Kah Capital.

What is the total unpaid principal balance (UPB) for the loans sold in Fannie Mae's recent transaction?

The total UPB for the loans sold in the transaction is $889.75 million.

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

The transaction is expected to close on August 19, 2022.

What requirements do buyers have regarding loss mitigation in Fannie Mae's loan sale?

Buyers are required to offer loss mitigation options to borrowers at risk of re-defaulting within five years after the sale.

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

The winning bidders were Pacific Investment Management Company (PIMCO) for Pool 1 and Kah Capital for Pool 3.