According to a new press release from the Government Sponsored Enterprise (GSE) Fannie Mae, it has announced the results of its thirtieth reperforming loan sale transaction.
The transaction deal, announced Jan. 11, includes the sales 2,722 loans totaling $499.6 million in unpaid principal balance, offered in a singular pool.
After opening the transaction for bids, the winning bidder was Pacific Investment Management Company, LLC (PIMCO).
The transaction is expected to close by March 26. The pool was marketed by Citigroup Global Markets Inc., as an advisor.
Details of the transaction
The loan pool awarded in this most recent transaction includes:
- Pool 1: 2,722 loans with an aggregate UPB of $499,614,377; average loan size of $183,547 weighted average note rate of 3.58%; and weighted average broker’s price opinion (BPO) loan-to-value ratio of 50%.
The cover bid, which is the second highest bid for the pool, was 82.375% of UPB (33.45% of BPO).
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 or payment deferral prior to initiating foreclosure on any loan.
Looking back, the GSEs sold off $30 billion in non-performing loans earlier this month.
This report shows that the Enterprises sold 163,297 NPLs with a total unpaid principal balance (UPB) of $30 billion from program inception in 2014 through June 30, 2023. The loans included in the NPL sales had an average delinquency of 2.8 years, and an average current mark-to-market loan-to-value (LTV) ratio of 84% (not including capitalized arrearages).
Click here to see the press release in its entirety.
