The Federal Housing Finance Agency selected the winning bidders in its Fannie Mae REO pilot initiative. And we will respect the decision to not release the investor's names early.

However, there are some early details on how successful the "robust" bidding process served the FHFA.

I will tell you this, the FHFA did very well in the pilot program. Many are saying it may be rolled out to a much greater extent nationally. Early reports say the pilot went well, except for one group of properties in Atlanta that did not move.

Nonetheless, it is clear that winning bids came from investors more comfortable with tight cash flow margins. Investors who modeled their bids to bank on home price increases either pulled out of the process or were outbid.

Early indications are that interest was so strong, the FHFA will successfully unload the properties for more that 90% of the broker price opinion. Hardly short of a firesale, which would've shown the FHFA overestimated the value of its REO.

Sources say a total of eight lots went up for auction and sold.