The Federal Housing Administration has completed a sale of nearly 12,500 nonperforming loans for roughly 46% of the unpaid principal balance of the loans.
The bidding on the 10 pools with a total UPB of $2.2 billion was conducted on March 20. The broker price opinion for the 10 pools was $1.6 billion. Seven of the pools came from Bank of America’s servicing shop.
Bayview Asset Management, Coral Gables, Fla., won four of the B of A loan pools. RBS Financial Products, Stamford, Conn., successfully bid two B of A pools, including the largest pool with 2,354 loans and a UPB of $426.3 million. OWS I Acquisitions won the seventh B of A pool.
Matawin Ventures Trust Series won the smallest pool with 382 loans from JPMorgan Chase with a UPB of $48.5 million.
And 25 Capital Residential Mortgage Opportunities Master Fund LLC won a Flagstar and a mixed-servicer pool.
Last September, FHA conducted a similar sale of 5,300 defaulted, uninsured loans and the winning bidders paid $368.3 million for loans. That represented 39% of the unpaid principal balance of the loans.
FHA did not disclose the total sales price for the March sale—only the percentage of UPB and BPO bid for each pool.
FHA is conducting quarterly sales to dispose of seriously delinquent loans where the servicer has exhausted all loss mitigation options.
Under the terms of the sale, the successful bidders cannot foreclose for six months. This restriction is intended to give borrowers one last chance for a loan modification.