On Thursday, Fannie Mae announced the results of its second reporforming loan sale transaction. The deal was previously announced on March 14, and consisted of 7,600 loans totaling $1.65 billion in unpaid principal balance (UPB).
The sale was marketed in collaboration with Citigroup Global markets, and bids were due on April 5.
“Last year’s reperforming loan sale pilot drew a great response from investors. We are pleased to offer our first sale of 2017 and expect a similar high level of investor interest,” said Bob Ives, VP of retained portfolio asset management, Fannie Mae. “We look forward to offering these pools as we continue to focus on reducing the size of our retained mortgage portfolio.”
All four loan pool were won by DLJ Mortgage Capital, Inc., and the transaction is expected to close on May 25. The average loan size was $215,808.41; weighted average note rate 4.10 percent; weighted average broker's price opinion (BPO) loan-to-value ratio of 103.60 percent. The cover bid price is 87 percent of UPB.
Fannie Mae defines reperforming loans as loans which were previously delinquent, but have begun performing and current again with or without the use of a loan modification.
Another recent loan sale, Fannie Mae’s non-performing Loan sale, is intended to close on April 25. The GSE’s non-performing loan sale is intended to reduce the number of seriously-delinquent loans owned by Fannie Mae and to help stabilize neighborhoods and to help meet the portfolio reduction targets required under the Senior Preferred Stock Purchase Agreement with the United States Treasury. Fannie Mae markets these loans in collaboration with Bank of America Merrill Lynch and The Williams Capital Group, L.P.
Winners of the non-performing loan sale included Igloo Series II Trust (Balbec Capital LP) for pool 1 and MTGLQ Investors, L.P. Goldman Sachs (Goldman Sachs) for pools 2 through 4.
For more information on future pools available for purchase, click here.