Fannie Mae offered investors a package of 2,490 real estate-owned properties in the first of several bulk REO packages promised by the Federal Housing Finance Agency, which oversees Fannie and Freddie, National Mortgage News reported Feb. 27.
As many as 83 percent of the properties included in the package are occupied, which means investors will take control of cash producing, single-family homes. Credit Suisse is serving as Fannie’s investment banker on the deal.
The package includes homes in Atlanta, Arizona, Chicago, Florida, Los Angeles and Riverside, Calif.
The FHFA said only prequalified investors will be allowed to submit bids on the REO portfolio; investors were invited to prequalify starting Feb. 1.
FHFA Acting Director Edward J. DeMarco called the auction an “important milestone” designed to reduce taxpayer losses and stabilize neighborhoods, National Mortgage News reported.
Together, Fannie Mae and Freddie Mac possess more than 180,000 REO properties; Fannie alone owns more than 122,000.