More than $3 billion in reperforming and non-performing government-sponsored enterprise mortgages are being marketed for sale to the highest bidder.
One of two transaction is an offering of roughly 9,900 reperforming loans that have a collective unpaid principal balance of $2.2 billion.
Reperforming loans were previously delinquent. But the mortgages are performing again due to the loans being brought current with and without modifications.
The Federal National Mortgage Association announced the offering Wednesday. The loans will be sold from its investment portfolio, which was reported at $244 billion as of Aug. 31.
It’s the fifth sale of reperforming loans by Fannie Mae.
The sale is being marketed in
collaboration with Citigroup Global Markets Inc. Bids are due by Nov. 6.
Washington-based Fannie is additionally selling
8,600 non-performing loans with an aggregate unpaid principal balance of $1.4 billion.
“Among other elements, terms of Fannie Mae’s non-performing loan transactions require the buyer of the non-performing loans to pursue loss mitigation options that are sustainable for borrowers,” the secondary mortgage lender said. “In the event 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.”
Bids on the non-performing offering, which is being marketed in collaboration with advisors Bank of America Merrill Lynch and First Financial Network Inc., are due by Nov. 2, though bids on a small portion of community impact pools ($0.1 billion) are being accepted until Nov. 15.
