Fannie Mae has announced the results of its twenty-third reperforming loan sale transaction. The deal includes 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 with 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 includes 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 holds 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 has 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 includes 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.
