Fannie Mae Announces the Results of its Thirty-fourth Reperforming Loan Sale Transaction
Rhea-AI Summary
Fannie Mae (OTCQB: FNMA) has announced the completion of its thirty-fourth reperforming loan sale transaction. The sale, initially announced on March 4, 2025, comprised 3,130 loans with a total unpaid principal balance of $558.7 million. Pacific Investment Management Company emerged as the winning bidder, with the transaction expected to close by April 23, 2025.
Key metrics of the loan pool include an average loan size of $178,503, a weighted average note rate of 3.82%, and a weighted average broker's price opinion loan-to-value ratio of 46%. The cover bid was 84.66% of UPB. The sale terms require buyers to offer loss mitigation options to borrowers who may default within five years, including loan modifications and potential principal forgiveness.
Positive
- Successful completion of large-scale loan sale transaction worth $558.7 million
- Relatively low loan-to-value ratio of 46% indicates reduced risk exposure
- Strong cover bid at 84.66% of UPB demonstrates good market interest
Negative
- Sale of reperforming loans may indicate previous collection challenges
- Requirement to offer loss mitigation options could impact buyer returns
News Market Reaction 1 Alert
On the day this news was published, FNMA gained 4.43%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
- The pool awarded in this most recent transaction includes 3,130 loans with an aggregate UPB of
$558,713,266 $178,503 3.82% ; and weighted average broker's price opinion (BPO) loan-to-value ratio of46% .
The cover bid, which is the second highest bid for the pool, was
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 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.
Interested bidders can register for ongoing announcements, training, and other information here. Fannie Mae will also post information about specific pools available for purchase on that page.
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SOURCE Fannie Mae
FAQ
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