1. Fannie Mae sold $558.7 million in reperforming loans. 2. Pacific Investment Management Company won the bidding. 3. Closing expected by April 23, 2025. 4. Buyers must offer loss mitigation options for re-defaulting borrowers. 5. Cover bid was 84.66% of UPB.
The sale of reperforming loans indicates a strong demand for FNMA assets, potentially boosting investor confidence in FNMA's stability and mitigation practices. Historically, successful loan sales have positively influenced FNMA's stock price as they reflect efficient asset management.
The loan sale represents a significant cash flow opportunity for FNMA, influencing stock performance directly. Investors often react favorably to such corporate developments, enhancing FNMA's market position.
The transaction's closure by April 23, 2025, will likely result in immediate impacts as market reactions are swift following such announcements. Previous sales have shown that market sentiment can shift rapidly based on structural changes in FNMA's assets.
WASHINGTON, April 1, 2025 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced the results of its thirty-fourth reperforming loan sale transaction. The transaction, announced on March 4, 2025, included the sale of 3,130 loans totaling $558,713,266 in unpaid principal balance (UPB), offered in one pool. The winning bidder was Pacific Investment Management Company LLC. The transaction is expected to close by April 23, 2025. The pool was marketed with Citigroup Global Markets Inc. as advisor.
The cover bid, which is the second highest bid for the pool, was 84.66% of UPB (31.25% 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 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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