Fannie Mae is continuing to shed non-performing loans from its books, announcing Tuesday that its plans to sell off more than $1 billion in delinquent loans.
According to the government-sponsored enterprise, this sale includes three larger pools that include approximately 5,900 loans totaling $1.04 billion in unpaid principal balance.
The sale also includes two Community Impact Pools, which are typically smaller pools of loans that are geographically-focused, and marketed to encourage participation by nonprofit organizations, minority- and women-owned businesses, and smaller investors.
The Community Impact Pools include approximately 190 loans totaling $35.68 million in UPB. One of the Community Impact Pools is located in the metro area of Orlando, Florida, while the other one is located in the Tampa, Florida area.
According to Fannie Mae, the terms of its NPL sales stipulate that the buyer of the non-performing loans is required to pursue loss mitigation options that are sustainable for borrowers.
Fannie Mae also said that in the event of a foreclosure, the owner of the loan must market the property to owner-occupants and non-profits exclusively before offering it to investors.
According to Fannie Mae, this sale of non-performing loans is being marketed in collaboration with Bank of America, Merrill Lynch and First Financial Network, which are serving as advisors.
Bids are due on the three larger pools on March 6 and on the Community Impact Pools on March 20, Fannie Mae said.
