#27- Fannie Mae Sold $500M of Loans

In this short podcast, you discuss Fannie Mae and Freddie Mac’s 35th reperforming loan sale announced on September 10th. You explain what reperforming loan sales are, provide the loan package details (3,044 loans, ~$559M UPB, 3.71% average note rate), and comment on the pricing (85% of unpaid principal balance). You highlight how low the implied yield is compared to alternatives like Treasury bills, and note the market dynamics of institutional buyers acquiring these loans. The episode closes with your reflection that such deals are “insanity” but show the scale and appetite in the note-buying marketplace.

Chapter 1

0:07 – Introduction & Loan Sale Basics

You welcome listeners and introduce the news: Fannie Mae sold its 35th reperforming loan package. You explain what a reperforming loan sale is—bundling mortgages (many likely from the COVID era) and selling them to the open market.

Chapter 2

0:28 – The Numbers Behind the Deal

Details of the sale: 3,044 loans, $559 million unpaid balance, $183,000 average loan size, and 3.71% average note rate. The loans were sold at 85% of UPB, effectively giving buyers an average yield around 4–4.5%.

Chapter 3

0:52 – Market Insights & Closing Thoughts

You comment on how low the returns are compared to Treasury bills, calling it “insanity” but acknowledging a strong market for buyers of these assets. You highlight the scale of the nearly $600M transaction, close with reflections on the note market, and invite listeners to like, share, and subscribe.

Learn More

nytfire.com

Text 📱 210-972-1842

Help support the show. https://podcasters.spotify.com/pod/show/nytfire/support