More than $3.6 billion in government-sponsored enterprise mortgages are being auctioned off. The loans are non-performing and re-performing.
One offering has 3,600 non-performing Fannie Mae loans with a collective unpaid principal balance of $613 million. Bids are due by June 1.
Washington-based Fannie is selling the residential loans from its investment portfolio, which was
previously reported at $269 billion as of March 31.
In the same announcement, the secondary lender said it is also selling $34 million in Community Impact Pools focused in the New York and New Jersey areas. Bids are due on June 4.
“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 statement 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.”
Both offerings are being marketed in collaboration with Wells Fargo Securities LLC and The Williams Capital Group LP as advisors.
Another announcement from Fannie indicated that 13,700 re-performing loans with an aggregate unpaid principal balance of $3.036 billion are being offered for sale.
The successful bidder the must offer loss mitigation options designed to be sustainable to any borrower who may re-default within five years following the loan sale. Buyers must also report on loss mitigation outcomes until a loan has been current for six consecutive months after the loan sale.
Bids are due by June 5.
The re-performing loan offering is
being marketed in collaboration with Citigroup Global Markets Inc.
