The Federal National Mortgage Association (OTCBB: FNMA), commonly known as Fannie Mae, said it plans to sell $1 billion of home-loan bonds without U.S. backing from its holdings, reports Bloomberg News.
Fannie is offering the non-agency securities from its portfolio in an auction on July 11, according to three inside sources who asked not to be named by Bloomberg.
Losses on securities led to the government seizing both Fannie Mae and its smaller counterpart Freddie Mac in 2008, as an effort to stabilize financial markets.
In May, the Federal Housing Finance Agency gave goals to both of the government-sponsored enterprises to sell off at least 5% of their illiquid holdings this year.
Fannie Mae’s balance sheet in May included $59.5 billion of non-agency home-loan securities and apartment-mortgage bonds, as well as $345.3 billion of loans, much of which was delinquent or modified debt, according to monthly data released by the company.
Read the Bloomberg News article.
Written by Jason Oliva
