FANNIE MAE - FNMA STOCK NEWS

Fannie Mae (FNMA) has announced RCG Strategic Acquisitions, as the winning bidder for its twenty-fifth Community Impact Pool (CIP) of non-performing loans. The transaction, set to close on December 20, 2024, comprises 29 deeply delinquent loans focused in the New York area, totaling $7.2 million in unpaid principal balance (UPB). The pool has an average loan size of $247,419 and a weighted average note rate of 4.93%.

The cover bid was 90.85% of UPB. Purchasers must honor existing loss mitigation efforts and offer delinquent borrowers various options, including loan modifications with possible principal forgiveness, before initiating foreclosure.

Fannie Mae's Economic and Strategic Research (ESR) Group has revised its economic outlook for 2024 and 2025. The U.S. economy is now expected to grow by 2.3% in 2024 and 2.0% in 2025, closer to long-run trend growth rates. This improved outlook is attributed to upward revisions in personal income data and recent positive employment figures.

The ESR Group forecasts the 30-year mortgage rate to end 2024 at 6.0%, decreasing to 5.7% by the end of 2025. Home prices are projected to grow by 5.8% in 2024 and 3.6% in 2025. While low housing inventory continues to push prices up, affordability constraints and increasing available homes for sale are expected to moderate price growth.

Mark Palim, Fannie Mae's Chief Economist, notes that while mortgage rates have declined, home prices remain a significant affordability challenge, especially for first-time buyers. The timing of increased home sales and further price moderation will depend on current homeowners' willingness to sell and continued strong homebuilding activity.

Fannie Mae (OTCQB: FNMA) has announced enhancements to its Expanded Housing Choice (EHC) initiative, extending it to all eligible jurisdictions nationwide without source of income protections. The program, which supports property owners and renters in markets lacking such protections, is now available for new loans to multifamily property owners accepting HUD Housing Choice Vouchers (HCVs).

Key points:

• EHC aims to expand housing opportunities for HCV holders
• Borrowers can benefit from lower pricing, flexible loan terms, and other advantages
• The initiative is extended through April 2026
• Properties must have at least 40% of units affordable at or below HUD Fair Market Rents
• Enhancements include increased eligibility threshold and streamlined data collection

Fannie Mae's latest Home Price Index (FNM-HPI) shows single-family home prices increased 5.9% year-over-year in Q3 2024, decelerating from the previous quarter's 6.4% growth. Quarterly, prices rose a seasonally adjusted 1.3%, down from 1.4% in Q2. The non-seasonally adjusted increase was 0.9% in Q3.

Mark Palim, Fannie Mae's Chief Economist, noted that home price growth remained robust due to weak housing supply, particularly in existing homes. Despite lower mortgage rates, home purchase activity remained constrained by the 'lock-in effect' and affordability issues. In September, high home prices surpassed high mortgage rates as the top reason for pessimism toward homebuying conditions.

The FNM-HPI, a national repeat-transaction index, is available quarterly from Q1 1975 to Q3 2024, providing insights into single-family home price trends across the United States.

Fannie Mae (OTCQB: FNMA) is reminding those affected by Hurricane Milton of available mortgage assistance and disaster relief options. Homeowners impacted by the hurricane can request mortgage assistance from their servicer, potentially reducing or suspending mortgage payments for up to 12 months through a forbearance plan. During this period, late fees are waived and foreclosure proceedings are suspended.

Mortgage servicers can offer a 90-day forbearance plan if they believe a home was affected by the disaster, even without homeowner contact. Fannie Mae offers free disaster recovery counseling at 855-HERE2HELP (855-437-3243), providing personalized support, needs assessment, and guidance for up to 18 months. Homeowners and renters can visit Fannie Mae's website for more information on disaster relief resources.

Fannie Mae (OTCQB: FNMA) has executed its sixth Credit Insurance Risk Transfer™ (CIRT™) transaction of 2024, CIRT 2024-H3, transferring $160.9 million of mortgage credit risk to private insurers and reinsurers. The covered loan pool consists of approximately 19,000 single-family mortgage loans with an outstanding unpaid principal balance (UPB) of about $6.4 billion.

Key details of CIRT 2024-H3 include:

• Loan-to-value (LTV) ratios of 80.01% to 97.00%
• Loans acquired between October 2023 and December 2023
• Fixed-rate, generally 30-year term, fully amortizing mortgages
• Fannie Mae retains risk for the first 185 basis points of loss
• 25 insurers and reinsurers cover the next 250 basis points of loss
• Maximum coverage of $160.9 million
• 18-year term based on actual losses

Since inception, Fannie Mae has acquired approximately $27.7 billion of insurance coverage on $928 billion of single-family loans through the CIRT program.

Fannie Mae has announced the winner of its twenty-fifth non-performing loan sale transaction. The deal, announced on September 10, 2024, involved the sale of 1,675 deeply delinquent loans with a total unpaid principal balance of $280.0 million. The winning bidder was VRMTG ACQ, (VWH Capital Management, LP), a Minority and Women-Owned Business.

The transaction is expected to close on November 22, 2024. The loan pool includes 1,675 loans with an average loan size of $167,172, a weighted average note rate of 3.88%, and a weighted average broker's price opinion loan-to-value ratio of 41%. The cover bid was 101.29% of UPB (41.35% of BPO).

Purchasers are required to honor any approved or in-process loss mitigation efforts and must offer delinquent borrowers a waterfall of loss mitigation options before initiating foreclosure.

Fannie Mae (OTCQB: FNMA) has announced the sale of reperforming loans as part of its strategy to reduce its retained mortgage portfolio. The sale includes approximately 8,721 loans with an unpaid principal balance of about $1.429 billion. Qualified bidders can register for the sale, which is being marketed in collaboration with Citigroup Global Markets, Inc. Bids are due on October 29, 2024.

The sale terms require buyers to offer loss mitigation options to borrowers who may re-default within five years after the sale closing. Purchasers must honor existing loss mitigation efforts and offer a waterfall of options, including loan modifications with potential principal forgiveness, before initiating foreclosure.

The Fannie Mae (OTCQB: FNMA) Home Purchase Sentiment Index® (HPSI) increased 1.8 points in September to 73.9, its highest level in over two years. A record 42% of consumers expect mortgage rates to decline in the next 12 months, up from 39% in August. However, a plurality also anticipates home prices to increase, potentially offsetting affordability improvements.

Only 19% of respondents believe it's a good time to buy a home, while 65% think it's a good time to sell. The HPSI is up 9.4 points year-over-year. Notably, renter sentiment has improved, with 20% now believing it's a good time to buy, up from 13% three months ago.

The net share of those expecting home prices to rise increased 3 percentage points to 16%. The net share expecting mortgage rates to decrease rose 2 percentage points to 15%, a second consecutive survey high.