Fannie Mae Announces the Results of its Thirty-first Reperforming Loan Sale Transaction

WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) today announced the results of its thirty-first reperforming loan sale transaction. The deal, announced on April 16, 2024, included the sale of 6,484 loans totaling $1.47 billion in unpaid principal balance (UPB), offered in three pools. The winning bidder was Pacific Investment Management Company LLC (PIMCO) for Pools 1, 2 and 3, each awarded individually. The transaction is expected to close by June 25, 2024. The pool was marketed with Citigroup Global Markets Inc. as advisor.

The loan pool awarded in this most recent transaction includes:

• Pool 1: 2,959 loans with an aggregate UPB of $667,197,001; average loan size of $225,481; weighted average note rate of 3.204%; and weighted average broker's price opinion (BPO) loan-to-value ratio of 48%.
• Pool 2: 2,197 loans with an aggregate UPB of $498,589,899; average loan size of $226,941; weighted average note rate of 3.208%; and weighted average broker's price opinion (BPO) loan-to-value ratio of 49%.
• Pool 3: 1,328 loans with an aggregate UPB of $299,535,261; average loan size of $225,554; weighted average note rate of 3.201%; and weighted average broker's price opinion (BPO) loan-to-value ratio of 49%.

The cover bid, which is the second highest bid for the pool, was 78.554% of UPB (32.30% of BPO) for Pool 1, 78.640% of UPB (32.70% of BPO) for Pool 2 and 78.870% of UPB (32.72% of BPO) for Pool 3.

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.

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.