Fannie Mae announced Tuesday that it plans to sell off $1.76 billion in non-performing loans, the latest in the government-sponsored enterprise’s efforts to rid itself of deeply delinquent mortgages.
According to details provided by Fannie Mae, this latest sale will include 10,000 delinquent loans split among four pools, totaling $1.76 billion in unpaid principal balance.
The sale also includes Fannie Mae’s latest Community Impact Pool, the GSE’s sixth such sale.
Per Fannie Mae, the Community Impact Pool is a smaller pool of loans that is geographically focused, high occupancy, and marketed to encourage participation by non-profit organizations, minority- and women-owned businesses and smaller investors.
According to Fannie Mae, the sale is being marketed in collaboration with Bank of America Merrill Lynch and The Williams Capital Group, as advisors.
“We are offering these non-performing loans and this community impact pool to diverse investors in an attempt to expand the opportunities available to borrowers who are significantly delinquent on their mortgages to avoid foreclosure,” said Joy Cianci, Fannie Mae’s senior vice president for single-family, special and distressed assets.
According to Fannie Mae, bid for the four larger pools are due on March 7, while bids for the Community Impact Pool are due on March 21.