Fannie Mae [1] has announced the results of its twelfth reperforming loan sale transaction. The sale was originally announced on June 13 and included the sale of approximately 16,500 loans totaling $2.6 billion in unpaid principal balance (UPB), divided into four pools, marketed with Citigroup Global Markets Inc. as advisor.The winning bidders of the four pools for the transaction were DLJ Mortgage Capital, Inc. (Credit Suisse) for Pools 1 & 2, Goldman Sachs Mortgage Company (Goldman Sachs) for Pool 3, and 510 Model I, LLC (400 Capital Management) for Pool 4. The transaction is expected to close on August 27, 2019.
The loan pools included were:
- Group 1 Pool: 2,161 loans with an aggregate unpaid principal balance of $446,429,087; average loan size $206,584; weighted average note rate 3.31%; weighted average broker's price opinion (BPO) loan-to-value ratio of 75%.
- Group 2 Pool: 5,854 loans with an aggregate unpaid principal balance of $878,017,169; average loan size $149,986; weighted average note rate 4.51%; weighted BPO loan-to-value ratio of 76%.
- Group 3 Pool: 5,668 loans with an aggregate unpaid principal balance of $832,399,270; average loan size $146,859; weighted average note rate 4.38%; weighted average BPO loan-to-value ratio of 77%.
- Group 4 Pool: 2,818 loans with an aggregate unpaid principal balance of $445,307,819; average loan size $158,023; weighted average note rate 4.29%; weighted average BPO loan-to-value ratio of 76%.
Earlier this year, Fannie Mae announced the winner of its fifteenth non-performing loan sale [2], which included 4,300 loans totaling $770.13 million in unpaid principal balance (UPB), divided among four pools. The winning bidders of the four pools for the transaction, expected to close on July 23, 2019, were Igloo Series IV Trust (Balbec Capital, LP) for Pool 1, MFRA Trust 2015-1 (MFA) for Pool 2, Elkhorn Depositor LLC (Roosevelt Mortgage Company, LLC) for Pool 3, and VRMTG ACQ, LLC (VWH Capital Management, LP) for Pool 4.
Freddie Mac and Fannie Mae’s NPL sales are part of the FHFA’s three strategic goals as conservator of the Enterprises, including maintaining foreclosure prevention activities and credit availability, reducing taxpayer risk, and building a new single-family securitization infrastructure, the Unified Mortgage Backed Security.
Fannie Mae and Freddie Mac marked the completion of their Single Security Initiative with the launch of the UMBS on June 3.
“UMBS is the result of close collaboration with FHFA, Freddie Mac, Common Securitization Solutions, and hundreds of housing finance stakeholders and we congratulate all involved on this achievement,” said Renee Schultz, SVP, Capital Markets, Fannie Mae in a statement. “We remain focused on ensuring that all market participants continue to make a smooth transition to UMBS and maintaining a highly liquid housing finance market.”