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Appraiser Gate?

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Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
"Fannie Mae Announces Results of its Fifth Reperforming Loan Sale Transaction

WASHINGTON, Nov. 13, 2017 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) today announced the results of its fifth reperforming loan sale transaction. The deal, which was announced on October 11, 2017, included the sale of approximately 9,300 loans totaling $2.11 billion in unpaid principal balance (UPB), divided into four pools. The winning bidder of all four pools for the transaction, which is expected to close on December 18, 2017, is DLJ Mortgage Capital, Inc. (Credit Suisse).

The pools were marketed with Citigroup Global Markets Inc. as advisor.


The loan pools awarded in this most recent transaction include:

  • Group 1 Pool: 2,710 loans with an aggregate unpaid principal balance of $587,556,866; average loan size $216,811; weighted average note rate 4.11%; weighted average broker's price opinion (BPO) loan-to-value ratio of 89%.
  • Group 2 Pool: 2: 1,592 loans with an aggregate unpaid principal balance of $400,103,814; average loan size $251,321; weighted average note rate 4.27%; weighted average BPO loan-to-value ratio of 117%.
  • Group 3 Pool: 2,700 loans with an aggregate unpaid principal balance of $590,779,257; average loan size $218,807; weighted average note rate 4.12%; weighted average BPO loan-to-value ratio of 94%.
  • Group 4 Pool: 2,346 loans with an aggregate unpaid principal balance of $531,041,551; average loan size $226,360; weighted average note rate 4.14%; weighted average BPO loan-to-value ratio of 98%.
The cover bid, which is the second highest bid, was 90.70% of UPB (79.02% of BPO) for the four pools in the aggregate."

$2.1 billion in unpaid balances.....Is that good?
 

bnmappraisal

Elite Member
Gold Supporting Member
Joined
Nov 9, 2011
Professional Status
Certified Residential Appraiser
State
Florida
Ron Stickleman is the one you want to listen to.
starts around the 9 min mark
...around the 22 min mark he talks about Cost Plus for AMCs
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
$2.1 billion in unpaid balances.....Is that good?
It is neither good nor bad...it is simply the balance that is still owed on those loans, it is not the amount that is delinquent. In fact, if you read the available information regarding these loans, they are all currently performing.

BTW, neither Phil nor Stickleman seem to realize that the investor who bought these loans bought them at approximately a 9% discount off of the principal balance, so the yield the investor is going to receive on their investment is not around 4.1% as Phil and Stickleman seem to think, but is actually around 4.9%, which is a pretty healthy yield in today's low interest rate environment, especially considering that the debt is secured debt as opposed to unsecured debt.
 
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djd09

Elite Member
Joined
May 20, 2009
Professional Status
Licensed Appraiser
State
Ohio
Where's AI on that list? Oh they are there.

Where are the State Organizations? Are they there too, but i do not see them?
 

Argentum

Sophomore Member
Joined
Sep 27, 2006
Professional Status
Licensed Appraiser
State
Texas
More Appraisers need to join the IAC. The Bankers pretend to be advocates while they work for the destruction of the profession. There is no shortage of Appraisers. There is only a shortage of Appraisers willing to work for less than a reasonable fee.
 
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