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

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) reported results from its 23rd reperforming loan sale, involving approximately 18,500 loans totaling $2.9 billion in unpaid principal balance. The sale, announced on October 7, 2021, will close on December 17, 2021. Winning bidders included PIMCO, JP Morgan, Goldman Sachs, and Credit Suisse. The pools featured loans with varying rates, such as 3.41% and 4.74%. The company emphasizes loss mitigation options for borrowers who may re-default, including loan modifications and forbearance.

Positive

• Successfully sold 18,500 reperforming loans for $2.9 billion, enhancing liquidity.
• Partnership with top-tier investors like PIMCO, JP Morgan, Goldman Sachs, and Credit Suisse.
• Structured loss mitigation strategies for borrowers to prevent re-default.

Negative

• None.

WASHINGTON, Nov. 9, 2021 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced the results of its twenty-third reperforming loan sale transaction. The deal, which was announced on October 7, 2021, included the sale of approximately 18,500 loans totaling $2.9 billion in unpaid principal balance (UPB), divided into five pools. The winning bidders of the five pools for the transaction were Pacific Investment Management Company LLC (PIMCO) for Pools 1 and 2, JP Morgan Mortgage Acquisition Corp. (Chase) for Pool 3, MCLP Asset Company, Inc. (Goldman Sachs) for Pool 4, and DLJ Mortgage Capital, Inc. (Credit Suisse) for Pool 5, each awarded individually. The transaction is expected to close on December 17, 2021. The pools were marketed with Citigroup Global Markets Inc. as advisor.

The loan pools awarded in this most recent transaction include:

• Pool 1: 2,279 loans with an aggregate UPB of $726,866,235; average loan size of $318,941; weighted average note rate of 3.41%; and weighted average broker's price opinion (BPO) loan-to-value ratio of 70%.
• Pool 2: 6,008 loans with an aggregate UPB of $605,563,467; average loan size of $100,793; weighted average note rate of 4.74%; and weighted BPO loan-to-value ratio of 49%.
• Pool 3: 3,835 loans with an aggregate UPB of $560,532,403; average loan size of $146,162; weighted average note rate of 4.22%; and weighted BPO loan-to-value ratio of 59%.
• Pool 4: 3,239 loans with an aggregate UPB of $499,856,157; average loan size of $154,324; weighted average note rate of 4.05%; and weighted BPO loan-to-value ratio of 63%.
• Pool 5: 3,156 loans with an aggregate UPB of $496,607,121; average loan size of $157,353; weighted average note rate of 4.05%; and weighted BPO loan-to-value ratio of 63%.

The cover bids, which are the second highest bids per pool, were 101.16% of UPB (62.83% of BPO) for Pool 1, 106.80% of UPB (38.88% of BPO) for Pool 2, 104.01% of UPB (47.57% of BPO) for Pool 3, 100.63% of UPB (50.69% of BPO) for Pool 4, and 103.38% of UPB (49.89% 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 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 people 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 value of Fannie Mae's reperforming loan sale on November 9, 2021?

The total value was approximately $2.9 billion in unpaid principal balance.

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

Major bidders included PIMCO, JP Morgan, Goldman Sachs, and Credit Suisse.

When will the reperforming loan sale transaction close?

The transaction is expected to close on December 17, 2021.

What is the significance of reperforming loans in Fannie Mae's sale?

Reperforming loans are delinquent loans that have shown signs of improvement, which can stabilize financial performance.