A buyer has been named in the auction of nearly $800 million in re-performing government-sponsored enterprise residential loans.
The transaction involves 3,508 Federal National Mortgage Association loans with an aggregate principal balance of $789 million.
Two pools were involved in the sale, and the cover bid price for the pair of pools was 88.15 percent based on the principal balance.
Fannie Mae reported Tuesday that
the winning bidder for both pools was Towd Point Master Funding, LLC (Cerberus). The transaction is expected to close on Dec. 15.
Washington-based Fannie began marketing the loans for sale on Oct. 11 in collaboration with Citigroup Global Markets Inc.
On a weighted-average basis, the note rate on the loans is 4.07 percent.
The weighted-average loan-to-value ratio based on a broker price opinion is 104 percent.
“We are pleased to see a high level of investor interest in our re-performing loans,” Fannie Mae Vice President of Retained Portfolio Asset Management Bob Ives said in the news release. “This sale supports our efforts to reduce the size of the company’s balance sheet.”
Fannie’s investment portfolio stood at $307 billion as of Sept. 30, 2016.
