Goldman Sachs affiliate wins Fannie Mae reperforming loan sale
MTGLQ Investors LP, a Goldman Sachs affiliate, was the winning bidder of Fannie Mae's $2.43 billion reperforming loan sale.
This is the fourth reperforming loan sale Fannie Mae has conducted since last November, removing $7.8 billion of these mortgages from its balance sheet.
The cover bid, which is the second highest made in the auction, was for 91.51% of the unpaid principal balance or 83.37% of a broker's price opinion valuation of the underlying properties.
This is the first time MTGLQ was the winning bidder on a reperforming loan sales transaction, although it won all or a portion of eight previous Fannie Mae auctions of nonperforming loans.
Fannie Mae divided the offering into three pools. The first pool consisted of 4,200 loans with an unpaid principal balance of $984.5 million, an average loan size of $234,433, a weighted average note rate of 4.54% and a weighted average BPO loan-to-value ratio of 109.61%.
The second pool was made up of 2,001 loans with an unpaid principal balance of $461.7 million and an average loan size of $230,751. The weighted average note rate was 4.36%, while the weighted average BPO loan-to-value ratio was 97.54%.
The final pool had 4,482 loans, with an unpaid principal balance of $988.8 million, an average loan size of $220,626, a weighted average note rate of 4.35% and a weighted average BPO loan-to-value ratio of 89.37%.
Citigroup Capital Markets was Fannie Mae's advisor on the sale. The transaction is expected to close on Oct. 26.
Towd Point Master Funding, a Cerberus Capital Management affiliate, was the winning bidder of the first reperforming loan sale Fannie Mae conducted last November. DLJ Mortgage Capital was the winning bidder for both the second and third nonperforming loan auctions.