A nearly $1.8 billion portfolio of government-sponsored enterprise mortgages is being auctioned off to the highest bidder.
The offering includes around 10,000 Fannie Mae home loans with an aggregate unpaid principal balance of
$1.78 billion.
In all, the mortgages are divided into five pools. Each of the residential loans being offered for sale is non-performing.
Among the five pools is a small community impact pool that is being marketed to
encourage participation by non-profit organizations, minority- and women-owned businesses and smaller investors.
Washington-based Fannie is selling the loans from its investment portfolio, which
concluded last year at $272 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 lender stated. “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 Bank of America Merrill Lynch and The Williams Capital Group LP, as advisors.
Bids on the four larger pools are due by March 7, while bids on the community impact pool are due by March 21.
