Bank of America and Citigroup put about $1 billion each of nonperforming and re-performing mortgages on the market, according to a report from Bloomberg
. The sales are in an effort to meet demand from hedge funds and private equity firms that are seeking to profit from rising home values.
HUD is also selling loans, including a current offering of about $1.1 billion, to reduce losses at the financially troubled FHA
, according to the report
In an effort to meet demand and avoid the costs of holding troubled debt, two major banks are said to be selling around $2 billion of soured mortgages.