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Fannie Mae Announces Results Of 28th Reperforming Loan Sale

David Krechevsky
Jan 17, 2023
Fannie Mae has announced that it will issue a request for proposals to hire an underwriting financial advisor who will assist in developing and implementing a plan for recapitalizing and ending its conservatorship

The sale included approximately 10,100 loans totaling $1.9 billion in UPB, divided into five pools.

Fannie Mae on Tuesday announced the results of its 28th reperforming loan sale transaction.

The deal, announced on Oct. 6, 2022, included the sale of approximately 10,100 loans totaling $1.9 billion in unpaid principal balance (UPB), divided into five pools.

The winning bidders were:

  • Pacific Investment Management Co. LLC (PIMCO) for Pools 1, 2 and 3;
  • JP Morgan Mortgage Acquisition Corp. (Chase) for Pool 4, and
  • PIF Onshore XXXV LP for Pool 5.

The transaction is expected to close by Feb. 23. The pools were marketed with Citigroup Global Markets Inc. as advisor, Fannie Mae said.

The loan pools awarded in this most recent transaction include:

  • Pool 1: 1,433 loans with an aggregate UPB of $277.15 million; average loan size of $193,403; weighted average note rate of 3.65%; and weighted average broker's price opinion (BPO) loan-to-value ratio of 48%.
  • Pool 2: 1,863 loans with an aggregate UPB of $358.19 million; average loan size of $192,264; weighted average note rate of 3.69 %; and weighted average broker's price opinion (BPO) loan-to-value ratio of 53%.
  • Pool 3: 3,709 loans with an aggregate UPB of $714.91 million; average loan size of $192,749; weighted average note rate of 3.66%; and weighted BPO loan-to-value ratio of 52%.
  • Pool 4: 1,525 loans with an aggregate UPB of $274.84 million; average loan size of $180,225; weighted average note rate of 3.78%; and weighted BPO loan-to-value ratio of 54%, and
  • Pool 5: 1,562 loans with an aggregate UPB of $275.9 million; average loan size of $176,627; weighted average note rate of 3.87%; and weighted BPO loan-to-value ratio of 52%.

The cover bids, which are the second-highest bids per pool, were 86.01% of UPB (34.93% of BPO) for Pool 1, 83.50% of UPB (35.67% of BPO) for Pool 2, 79.58% of UPB (33.91% of BPO) for Pool 3, 79.55% of UPB (35.42% of BPO) for Pool 4, and 81.25% of UPB (35.26% of BPO) for Pool 5. 

Reperforming loans are loans that have been or currently are 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 redefault 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.

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