FHA Sale Of Mortgage Loans Yields $94 Million

The auction generated proceeds of approximately $432 million or nearly 70 percent of the mortgages' unpaid principal balance. This represents approximately $94 million in budget savings. The total budget savings from mortgage loan sales held since 1994 now surpasses $2.35 billion. The sales program is part of the U.S. Department of Housing and Urban Development's strategy to manage FHA's $400 billion insurance program. The sales enable HUD to transfer mortgages to the private sector and realize a strong return for taxpayers. Selling the mortgages also helps HUD to focus on its core mission of providing affordable housing. The sale drew bids from approximately 75 different bidders, including financial institutions, real estate companies, investment funds and individuals. Some 25 were awarded loans.