Fannie Mae plans to sell nonperforming loans with $1.7 billion in unpaid principal balance.
The sale will include Fannie Mae's sixth "community impact" pool of loans, the government-sponsored enterprise said Tuesday. Fannie Mae markets these smaller pools to nonprofit organizations, minority- and women-owned businesses, and smaller investors.
"We are offering these nonperforming loans and this community impact pool to diverse investors in an attempt to expand the opportunities available to borrowers who are significantly delinquent on their mortgages to avoid foreclosure," Joy Cianci, Fannie Mae's senior vice president for single-family, special and distressed assets, said in a news release.
The four larger pools will have roughly 10,000 loans with $1.76 billion in upaid principal balance. Bids on the larger pools are due March 7; Fannie Mae will accept bids on the community impact pool until March 21.
Bank of America Merrill Lynch and The Williams Capital Group are serving as advisors for the sale.