The Department of Housing and Urban Development (HUD) and its auction advisor DebtX have set an auction deadline of Sept. 12 for investors to submit sealed bids on $1.7 billion of nonperforming residential loans.

It is believed to be the largest ever NPL auction by the agency and could serve as a model for Fannie Mae and Freddie Mac.

In terms of units, roughly 9,400 loans will be offered. The mortgages are collateralized by homes in Chicago, Newark, Phoenix and Tampa. The average note size is $182,000.

The portfolio will be offered in both national and regional pools.

In a press statement, DebtX said investors so far have shown “tremendous” interest in the pool.

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