Fannie Mae Nets Nearly $3 Billion in Reperforming Loan Sale

Fannie Mae, in working with Citigroup Global Markets, announced on Tuesday that they have sold 13,500 loans with a cumulative unpaid principle balance (UPB) of $2.99 billion in their third reperforming loan sale.

The collection of loans were divided into three groups and sold off to a single bidder: DLJ Mortgage Capital, Inc (Credit Suisse).

The first and largest pool of loans was comprised of 5,179 loans with a total UPB of $1,147,189,914. Their average loan size is $221,508.00 and highest weighted loan rate of the three groups at 4.45 percent. The weighted average broker’s price opinion (BPO) loan-to-value ratio is 94.9 percent, the second riskiest acquisition of the three.

The second group of loans had 5,096 in it, and a total UPB of $1,120,135,737. This pool also has the highest BPO loan-to-value ratio at 112.65 percent. Median loan size was $219,808.86 and the weighted average note rate was 4.43 percent.

The smallest pool, at 3,254 loans valued at $731,116,035. Houses in this group had an average loan size of $224,682.25, and the lowest weighted note rate of 3.86 percent. This final group also had the lowest BPO, sitting at 93.19 percent.

Fannie Mae expects to close on the bid of this sale July 21, and originally announced the winner of this bid back on May 10. The lender first started selling reperforming loans on October 11, 2016 to investors, nonprofits, and public sector organizations to try to reduce inventory in its retained mortgage portfolio. Fannie Mae is required by the Senior Preferred Stock Purchase Agreement with the U.S. Treasury to meet portfolio reduction targets.


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