Fannie Mae is planning to sell off more than $1 billion worth of loans that are not performing.
The sale includes three larger pools of loans and two Community Impact Pools, which are generally smaller, focused on geography and geared toward smaller investors, according to HousingWire.
The three larger pools include about 5,900 loans worth roughly $1 billion, and the Community Impact Pools include about 190 loans worth roughly $36 million.
Fannie Mae has said the terms of the sale will require buyers to pursue strategies for loss mitigation, and in the case of foreclosures, the loan owners have to market the properties to nonprofits and owner-occupants before investors.
Bids on the Community Impact Pools are due on March 20, and bids on the larger pools are due on March 6.
Hedge funds in Fannie and Freddie Mac are awaiting Congress’ decision on a draft bill that would put the mortgage companies into receivership and force them to sell their assets, which has led to questions as to how the firms’ shareholders would get compensated. [HousingWire] – Eddie Small