Mortgage

Fannie Mae announces winner of seventh re-performing loan sale

Credit Suisse continues to buy up re-performing loans

Fannie Mae announced Tuesday that a subsidiary of Credit Suisse is the winner of its seventh re-performing loan sale transaction.

The winner of the sale, which is made up of about 26,900 loans totaling about $6.14 billion in unpaid principal balance, is Credit Suisse subsidiary DLJ Mortgage Capital.

And this isn’t the first re-performing loan sale DLJ Mortgage has won. Last year, the company won several transactions including $1.62 billion in re-performing loans in April and $2.99 billion in re-performing loans in June.

DLJ Mortgage Capital also recently purchased $4.9 billion in mortgages from HSBC Finance Corp. and HSBC Bank, as part of HSBC’s reduction of its U.S. mortgage business, which began back in 2008.

Fannie Mae began marketing this latest sale on June 13, 2018 with Citigroup Global Markets as an advisor. Now, the sale is expected to close on September 21, 2018.

The $6.14 billion in unpaid principal balance was divided into four separate pools. Here’s what made up each one:

  • Group 1 Pool: 2,557 loans with an aggregate unpaid principal balance of $557,177,914; average loan size $217,903; weighted average effective rate 3.56%; weighted average broker's price opinion (BPO) loan-to-value ratio of 93%.
  • Group 2 Pool: 6,231 loans with an aggregate unpaid principal balance of $930,510,767; average loan size $149,336; weighted average effective rate 4.23%; weighted average BPO loan-to-value ratio of 74%.
  • Group 3 Pool: 4,662 loans with an aggregate unpaid principal balance of $1,196,172,654; average loan size $256,579; weighted average effective rate 3.35%; weighted average BPO loan-to-value ratio of 90%.
  • Group 4 Pool: 13,492 loans with an aggregate unpaid principal balance of $3,459,664,033; average loan size $256,423; weighted average effective rate 3.33%; weighted average BPO loan-to-value ratio of 91%.

The cover bid, or second highest bid, was 86.13% of the total unpaid principal balance for all four pools, which were purchased on an all-or none basis.

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