Colony Capital LLC is one of the winning bidders on a Fannie Mae REO sale sponsored by the Federal Housing Finance Agency (FHFA), according to bidders and other sources familiar with the matter.
The Los Angeles based investment firm was aggressive in purchasing REO and non-performing mortgages from the Resolution Trust Corp. back in the early 1990s. Advisors told NMN it isn’t surprising that Colony Capital would participate in the first GSE sale that is designed to turn foreclosed properties into rentals.
When asked about winning a pool, a Colony Capital spokeswoman said, “No comment.”
Sources said Amherst Holdings, Austin, Texas, and Carrington Holding Co., Santa Ana, Calif., also bid on the REO pools offered by Fannie Mae.
One investor said Amherst bid on Atlanta area REO properties held by Fannie but has not yet been notified on its bid.
The 2,490 REO properties in the sale were divided into eight geographically concentrated pools. Winning bidders are required to rent the properties for at least three years.
FHFA designed the REO pilot program to remove foreclosed properties from Fannie Mae and Freddie Mac’s balance sheets without putting downward pressure on local house prices.
Credit Suisse is acting as advisor on the REO sale.