Thursday, 14 November, 2019

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Fannie Mae Securities Update: A Billion-Dollar Offering


Fannie Mae recently announced the winning bidder for its sixteenth Community Impact Pool of non-performing loans. The transaction is expected to close on December 17, 2019 and includes approximately 83 loans totaling $19.1 million in unpaid principal balance (UPB); the loans are geographically focused in the Miami, Florida area. The winning bidder was Matawin Ventures XXIX, LLC (Tourmalet Advisors).

The transaction included just one loan pool comprised of 83 loans with an aggregate unpaid principal balance (UPB) of $19,084,409; with an average loan size of $229,933; weighted average note rate of 4.18%; weighted average delinquency of 29 months; and weighted average broker’s price opinion loan-to-value ratio of 87% weighted by UPB.

Additionally, the GSE announced that it has priced a $998 million Connecticut Avenue Securities note offering. The offering, CAS Series 2019-R07, is designed to share credit risk on its single-family conventional guaranty book of business.”

“We are pleased to successfully bring our seventh CAS REMIC transaction to market this year,” said Laurel Davis, VP of Credit Risk Transfer, Fannie Mae. “Subject to market conditions, we plan to return to market in late November with a new series of CAS notes referencing loans originated under Fannie Mae’s Refi Plus and HARP initiative, as part of ongoing capital management efforts. This will be our final transaction of the year.”

The reference pool for CAS Series 2019-R07 consists of approximately 102,000 single-family mortgage loans with an outstanding UPB of approximately $26.6 billion. The majority of these loans were acquired from April through June 2019, and are fixed-rate, generally 30-year term, fully amortizing mortgages.

Potential buyers can register for ongoing announcements or training, and find more information on Fannie Mae’s sales of Community Impact Pools of non-performing loans and on the Federal Housing Finance Agency’s guidelines for these sales, on the company’s Whole Loans Sales’ page.