Swamped with a record $70 billion of claims from residential servicers on loans originated from 2007-2009, the Federal Housing Administration (FHA) Friday said it would hike upfront insurance premiums by 10 basis points and aggressively begin selling nonperforming loans at an annual pace of 40,000 units a year.

The nonperforming loans sales – which will entail the disposal of only seriously delinquent loans – will commence in February, said FHA acting commissioner Carol Galante.

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