More than $500 million in non-performing residential loans are being offered for sale by the Federal National Mortgage Association.
A statement Thursday indicated that the government-controlled enterprise is taking bids on roughly 3,400 mortgages for $546 million.
The offering includes two pools of around 3,300 non-performing home loans with an aggregate principal balance of $526 million.
A third Community Impact Pool includes 90 loans with a combined principal balance of $20 million with a Miami concentration. It’s the fourth Community Impact offering by Fannie Mae.
“Among other elements, terms of Fannie Mae’s non-performing loan transactions require that when a foreclosure cannot be prevented, the owner of the loan must market the property to owner-occupants and non-profits exclusively before offering it to investors, similar to Fannie Mae’s FirstLook program,” the announcement said.
The loans are being marketed in collaboration with Bank of America Merrill Lynch and CastleOak Securities LP as advisors.
Bids on the two larger pools are due by July 7, and a winning bid will be selected soon after. Due diligence will continue until the second half of August, and the sale is expected to close in late August.
Bids on the Community Impact Pool are due by July 21, and a bid is expected to be awarded in the second half of July. The winning bidder will have until the second half of September to complete due diligence, and the sale is expected to close by the end of September.
The Washington-based company’s investment portfolio stood at $328 billion as of April 30.
