Bids are being accepted on nearly $1.4 billion in non-performing government-sponsored enterprise residential loans that are being auctioned off.
The offering from the Federal National Mortgage Association involves five pools of home loans that are currently classified as non-performing.
There are approximately 7,300 residential loans that are included in the pools.
The aggregate unpaid principal balance on the loans is $1.39 billion.
Fannie Mae is unloading the loans from its investment portfolio, which stood at $311 billion as of Aug. 31.
“Terms of Fannie Mae’s non-performing loan transactions require the buyer to pursue loss mitigation options that are sustainable for borrowers,” the secondary lender stated in the announcement. “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.”
The sale is being marketed in collaboration with Wells Fargo Securities LLC as an advisor.
Qualified bidders have until Nov. 3 to bid on the pools.
The offering comes as Washington-based Fannie is also marketing the sale of 3,600 re-performing loans with an aggregate principal balance of $806 million.
