Fannie Mae Announces the Results of its Thirty-third Reperforming Loan Sale Transaction
Rhea-AI Summary
Fannie Mae (FNMA) has announced the results of its thirty-third reperforming loan sale transaction, involving 8,678 loans with a total unpaid principal balance of $1.42 billion. The sale was divided into three pools, with Pacific Investment Management Company winning Pools 1 and 2, and JP Morgan Mortgage Acquisitions Corp. securing Pool 3. The transaction is set to close by December 20, 2024. The weighted average note rates range from 3.82% to 4.03%, with loan-to-value ratios between 47% and 49%. The cover bids ranged from 82.09% to 84.375% of UPB.
Positive
- Successfully sold $1.42 billion worth of reperforming loans
- Secured major institutional buyers (PIMCO and JP Morgan)
- Relatively low loan-to-value ratios (47-49%) indicating lower risk
Negative
- Sale prices below par value (cover bids ranging 82.09-84.375% of UPB)
News Market Reaction 1 Alert
On the day this news was published, FNMA gained 4.91%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
The loan pool awarded in this most recent transaction includes:
- Pool 1: 2,924 loans with an aggregate UPB of
$510,578,698 $174,617 3.82% ; and weighted average broker's price opinion (BPO) loan-to-value ratio of47% . - Pool 2: 3,311 loans with an aggregate UPB of
$524,573,434 $158,434 4.03% ; and weighted average broker's price opinion (BPO) loan-to-value ratio of48% . - Pool 3: 2,443 loans with an aggregate UPB of
$388,965,911 $159,217 3.96% ; and weighted average broker's price opinion (BPO) loan-to-value ratio of49% .
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 or payment deferral 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.
About Fannie Mae
Fannie Mae advances equitable and sustainable access to homeownership and quality, affordable rental housing for millions of people across America. We enable the 30-year fixed-rate mortgage and drive responsible innovation to make homebuying and renting easier, fairer, and more accessible. To learn more, visit: fanniemae.com | X (formerly Twitter) | Facebook | LinkedIn | Instagram | YouTube | Blog
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https://www.fanniemae.com/news
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SOURCE Fannie Mae
FAQ
What was the total value of Fannie Mae's (FNMA) thirty-third reperforming loan sale?
Who won the bidding for Fannie Mae's (FNMA) reperforming loan pools in November 2024?
What were the loan-to-value ratios in Fannie Mae's (FNMA) November 2024 loan sale?
