Fannie Mae’s latest sale of non-performing loans includes three pools of approximately seven thousand loans totaling $1.2 billion in unpaid principal balance.
The loans are available for purchase by qualified bidders
Credit Suisse Securities, J.P. Morgan Securities, Bank of America Merrill Lynch and the Williams Capital Group L.P. are marketing the sale of the non-performing loans.
“This is our third sale of non-performing loans, meant to reduce the number of severely delinquent loans we hold and provide borrowers with additional options to avoid foreclosure,” said Joy Cianci, senior vice president for Credit Portfolio Management at Fannie Mae.
“As with previous loan sales, servicers are required to apply a range of options to help borrowers avoid foreclosure whenever possible. These actions help in stabilizing neighborhoods and reducing severely delinquent loans on our books,” Cianci added.
The terms of Fannie Mae’s non-performing loan transactions require that when a foreclosure cannot be prevented, the loan owner must market the property to owner-occupants and non-profits exclusively before offering it to investors.
Fannie Mae announced in August the winning bidder of its second sale of non-performing loans.
According to an announcement from Fannie Mae, Lone Star Funds, or more specifically the private-equity's trust LSF9 Mortgage Holdings, won Fannie Mae’s second sale of non-performing loans.