Fannie Mae recently auctioned 8,678 re-performing mortgage loans with about $1.42 billion in unpaid principal balance (UPB), offered in three pools.
The winning bidder for Pool 1 and Pool 2 was Pacific Investment Management Co. while the winning bidder for Pool 3 was JP Morgan Mortgage Acquisitions Corp. This was Fannie Mae’s 33rd re-performing loan sale to date.
The transaction is expected to close by December 20. The pools were marketed with Citigroup Global Markets Inc. as advisor.
Pool 1 included 2,924 loans with an aggregate UPB of about $511 million. The average loan size was $174,617; the weighted average note rate was 3.82%; and the weighted average broker’s price opinion (BPO) loan-to-value ratio was 47%.
Pool 2 included 3,311 loans with an aggregate UPB of about $525 million. The average loan size was $158,434; the weighted average note rate was 4.03%; and the weighted average broker’s price opinion (BPO) loan-to-value ratio was 48%.
Pool 3 consisted of 2,443 loans with an aggregate UPB of $389 million. The average loan size was $159,217; the weighted average note rate was 3.96%; and the weighted average broker’s price opinion (BPO) loan-to-value ratio was 49%.
The cover bid, which is the second highest bid for the pool, was 83.55% of UPB (32.26% of BPO) for Pool 1, 84.375% of UPB (31.73% of BPO) for Pool 2, and 82.09% of UPB (31.98% 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 loan modifications. In addition, purchasers must offer delinquent borrowers a waterfall of loss mitigation options, including loan modifications, which may include principal forgiveness or payment deferral prior to initiating foreclosure on any loan.
Photo: Pepi Stojanovski
