Fannie Mae is selling $1.2 billion worth of nonperforming loans, in an attempt to give borrowers other options besides foreclosure.
The three pools of NPLs, totaling about 7,000 loans, were put up for sale this week, according to a Friday
The sale is "meant to reduce the number of severely delinquent loans we hold and provide borrowers with additional options to avoid foreclosure," Joy Cianci, senior vice president for credit portfolio management at Fannie Mae, said in the release.
In Fannie Mae's sales of NPLs, if a foreclosure is required, the owner of the loan must market the property to owner-occupants and nonprofits, before offering it to private investors.
Credit Suisse, JPMorgan Chase, Bank of America and Williams Capital Group advised Fannie Mae on the sale.
