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
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
