Fannie Mae has hit the market with a 2,490-REO package designed for bulk investors – the first such pilot auction promised by its regulator, the Federal Housing Finance Agency (FHFA).

Just 17% of the units are vacant, which means investors will take control of cash flow producing, turnkey properties.

According to an offering circular released early Monday afternoon, the package includes single-family properties – vacant and occupied – owned by the GSE. Credit Suisse is serving as Fannie's investment banker on the deal.

The package is top-heavy in homes located in Atlanta, Arizona, Los Angeles/Riverside, and different parts of Florida.

FHFA said only “prequalified” investors will be allowed to submit bids on the REO portfolio.
Before gaining access to information on the auction, investors must post a security deposit, and sign a confidentiality agreement.

FHFA acting director Edward DeMarco called the auction an “important milestone” designed to reduce taxpayer losses and stabilize neighborhoods hard hit by the housing crisis.

At the end of September, Fannie owned 122,600 REO properties. The count includes 34,450 REO properties in Arizona, California, Florida and Nevada as well as 28,300 REO in four hard-hit Midwest states.

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