Fannie Mae is contemplating selling nonperforming mortgages out of its portfolio, offering the notes to the highest bidder, according to vendors and investors who have talked to the GSE about the plan.
At this point, no NPL auctions are scheduled and the GSE is still exploring the situations, officials said.
Fannie, which has been under government control since September 2008, declined to comment.
Industry sources said if Fannie sells NPLs – instead of foreclosing on the mortgages and selling the resulting REO – it could save hundreds of millions of dollars, depending on the final sale price.
Over the past year the GSE, along with Freddie Mac, have purchased nearly $267 billion of NPLs out of their MBS pools.
Now that the two have taken title to these "loan" assets, they must either resolve the mortgage loan out through a specialty servicer, or foreclose.
