Citigroup late last month sold a $517 million portfolio of nonperforming mortgages, according to market sources.

Initially, bidders looking at the product included PennyMac Mortgage Investment Trust, Lone Star Funds, and Selene Finance.

As of press time, Citigroup had not returned a telephone call about the matter.

However, it has been no secret in the industry that Citigroup has been an active seller of NPLs over the past year. In December the bank sold a $441 million package of nonperforming loans to PennyMac for an undisclosed amount.

An investor familiar with recent Citigroup auction said the NPLs were sold in three different pools. "They got their reserve price too," he said, requesting his name not be published.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.