Nearly $2 billion in government-sponsored enterprise single-family loans that are currently not performing are being offered for sale through an auction to the highest bidder.
Bids are being accepted for 11,000 non-performing Fannie Mae mortgages that have an aggregate unpaid principal balance of $1.84 billion.
The loans are broken out into five pools, including four pools with around 10,300 loans for $1.71 billion and one community impact pool with 700 loans for $0.134 billion.
Washington-based Fannie, the seller in the transaction, said buyers of non-performing loans are required to pursue loss mitigation options that are sustainable for borrower.
Fannie is marketing the loans in collaboration with Bank of America Merrill Lynch and The Williams Capital Group, as advisors.
The loans are being sold from the secondary mortgage lender’s investment portfolio, which was reported at $228 billion as of March 31.
Bids on the four larger pools
are due by June 6, while bids on the community impact pool is due by June 19.
