More than a billion dollars in severely delinquent Fannie Mae residential loans are being marketed for sale.
The offering is for approximately 7,000 mortgages with an aggregate principal balance of $1.2 billion. The loans are non-performing. (the amount was mistakenly originally reported as $12 billion)
Mortgages in the prospective transaction are held in three pools. Offers for the three pools are being accepted from qualified bidders.
The seller is Fannie, which is marketing the loans
in collaboration with Credit Suisse Securities (USA) LLC, J.P. Morgan Securities, Bank of America Merrill Lynch and the Williams Capital Group L.P.
It’s the third offering of non-performing loans by Fannie. The sale is intended
to reduce the number of severely delinquent loans held by the Washington-based company while providing delinquent borrowers with additional options to avoid foreclosure.
“As with previous loan sales, servicers are required to apply a range of options to help borrowers avoid foreclosure whenever possible,” Fannie Mae Senior Vice President for Credit Portfolio Management Joy Cianci said in Friday’s announcement. “These actions help in stabilizing neighborhoods and reducing severely delinquent loans on our books.”
The successful bidder will be required to exclusively
market the properties to owner-occupants and non-profits before offering them to investors when a foreclosure cannot be avoided.
