$ 1.8 billion in outstanding balance from an outstanding loan sale
Fannie Mae started marketing its fifteenth reproductive loan sale this week, continuing the GSE’s efforts to reduce the size of its retained mortgage portfolio.
Sales consist of approximately 12,775 loans with an outstanding principal of approximately $ 1.8 billion. Offers are due on March 10.
Reproductive loans are loans that were previously in arrears but have been repaid for a period of time. Some loans can be in arrears for up to 90 days.
Fannie Mae announced the results of its fourteenth reproductive loan sales transaction at the end of last year. The deal included the sale of approximately 20,800 loans totaling $ 3.1 billion in outstanding principal balance (UPB), divided into six pools.
The winning bidders of the six pools for the transaction were DLJ Mortgage Capital, Inc. (Credit Suisse) for pools 1, 2 and 3, JP Morgan Mortgage Acquisition Corp. (Chase) for pools 4 and 6, and NRZ Mortgage Holdings, LLC. (Fortress) for Pool 5. The deal is expected to close on December 19, 2019.
Freddie Mac, meanwhile, recently announced that it auctioned 2,243 non-performing senior residential loans (NPLs) from its mortgage-related investment portfolio. The loans, with a balance of approximately $ 369 million, are currently managed by Specialized Loan Servicing LLC. The deal was due to be settled in January 2020. The sale is part of Freddie Mac’s standard pool offerings.
Fannie Mae announced this week it posted a net profit of $ 14.2 billion in 2019, including $ 4.4 billion in the fourth quarter of 2019.
GSE net worth reached $ 14.6 billion at the end of the year. Based on the current agreement with the US Department of the Treasury and the Federal Housing Finance Agency (FHFA), the company can keep quarterly profits until its net worth reaches $ 25 billion.
Fannie Mae provided more than $ 650 billion in liquidity to the mortgage market in 2019, helping to finance more than three million purchases, refinances and rental housing.
They were the largest single-family mortgage-related issuer in the secondary market in 2019, with an estimated single-family issuance market share of 37%.