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Fannie Mae has announced the results of its 26th reperforming loan sale.
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 Aug. 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.