The transaction includes about 123 loans and is expected to close by August
Refi activity also rose to 46.6% of total mortgage applications from 45.4%
Mortgage applications for new home purchases were up in October.
Customers are more satisfied with the mortgage process than they have been in years.
An increase in judicial foreclosure actions led to an uptick in foreclosure filings last month.
HUD has been selling underperforming mortgages in an effort to keep homeowners in their houses, but the agency decided the bids on the latest batch were too low to accept.
A White House economist has stressed the need for a continued government mortgage guarantee, regardless of the fate of Fannie and Freddie
The head of the CFPB was taken to task by Senate committee members Wednesday for the agency's habit of holding closed-door sessions and failing to provide notice for public hearings.