Ives declined to discuss the face value of the loan other than to say that they will be priced based on the loans' credit risk, interest rate and maturity.

The usual suspects will be likely bidders, including insurance companies, hedge funds, private equity investors and money managers.

However these loans are less of a hedge fund-type of product or investment than the non-performing loans that the GSEs have been marketing, Ives reminds GlobeSt.com. Rather they are high-quality loans “that are performing and have had a chance to season.”

Fannie Mae has begun securitizing the re-performing single-family home loans that it can, but it expects to market more loans that cannot be included in agency MBS, Ives says.

“We expect to have more sales next year.”

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.

Fannie Mae

WASHINGTON, DC–You have to hand it the GSEs. They are selling off any and every loan on their balance sheets, and if these loans don't fit in a standard agency securitization, then they are bundled up in another package attractive to investors.

So it goes with Fannie Mae's new pilot project to sell its so-called re-performing single-family loans that fell into default during the housing crisis, were subsequently modified and are now performing again — or re-performing as the GSE puts it.

These loans are not suitable for securitization because there is some portion of non-interest bearing debt associated with the loan or forbearance, Bob Ives, head of retained portfolio asset management at Fannie Mae, told GlobeSt.com.

Fannie Mae has retained Citigroup Global Markets to market these loans, dividing them into two pools. There are 3,600 loans altogether, totaling $806 million in unpaid principal balance, is available for purchase by qualified bidders. Bids are due on Nov. 1.

Ives declined to discuss the face value of the loan other than to say that they will be priced based on the loans' credit risk, interest rate and maturity.

The usual suspects will be likely bidders, including insurance companies, hedge funds, private equity investors and money managers.

However these loans are less of a hedge fund-type of product or investment than the non-performing loans that the GSEs have been marketing, Ives reminds GlobeSt.com. Rather they are high-quality loans “that are performing and have had a chance to season.”

Fannie Mae has begun securitizing the re-performing single-family home loans that it can, but it expects to market more loans that cannot be included in agency MBS, Ives says.

“We expect to have more sales next year.”

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.