For about a decade GSE Fannie Mae has been carrying delinquent mortgages that have started performing again (that is, payments on the mortgages have become current with or without the assistance of modification of loan terms). Fannie Mae packages and markets the reperforming loans to investors, usually through a money center bank.
Fannie Mae Tuesday announced the results of its sixteenth such [1]package of reperforming loans, 18,190 loans totaling $3.37 billion in unpaid principal balance (UPB), divided into six pools.
The winning bidders of the six pools for the transaction were DoubleLine Capital LP for Pool 1, LSRMF Mortgage Holdings II, LLC for Pool 2, DLJ Mortgage Capital, Inc. for Pool 3, Great Ajax Operating Partnership LP for Pools 4 and 5, and JP Morgan Mortgage Acquisition Corp. for Pool 6. The transaction is expected to close on September 25. The pools were marketed with Citigroup Global Markets Inc. as advisor.
The loan pools awarded in this most recent transaction include:
- Pool 1: 2,448 loans with an aggregate unpaid principal balance of $553,556,523; average loan size $226,126; weighted average note rate 3.624%; weighted average broker's price opinion (BPO) loan-to-value ratio of 78%.
- Pool 2: 2,147 loans with an aggregate unpaid principal balance of $448,884,977; average loan size $209,075; weighted average note rate 3.267%; weighted BPO loan-to-value ratio of 74%.
- Pool 3: 4,409 loans with an aggregate unpaid principal balance of $711,583,814; average loan size $161,393; weighted average note rate 4.465%; weighted BPO loan-to-value ratio of 79%.
- Pool 4: 3,578 loans with an aggregate unpaid principal balance of $570,146,232; average loan size $159,348; weighted average note rate 4.129%; weighted BPO loan-to-value ratio of 77%.
- Pool 5: 2,481 loans with an aggregate unpaid principal balance of $518,217,233; average loan size $208,874; weighted average note rate 4.170%; weighted BPO loan-to-value ratio of 69%.
- Pool 6: 3,125 loans with an aggregate unpaid principal balance of $567,290,447; average loan size $181,533; weighted average note rate 3.905%; weighted BPO loan-to-value ratio of 83%.
According to the GSE, "The cover bids, which are the second highest bids per pool, were 99.19% of UPB (69.58% of BPO) for Pool 1, 97.25% of UPB (63.85% of BPO) for Pool 2, 100.19% of UPB (66.63% of BPO) for Pool 3, 93.55% of UPB (62.07% of BPO) for Pool 4, 91.51% of UPB (55.95% of BPO) for Pool 5 and 84.03% of UPB (60.17% of BPO) for Pool 6."
Interested bidders should register for ongoing announcements, training, and other information at this Fannie Mae Portal [2], where the GSE also will post information about specific pools available for purchase on that page.