Servicer Gets a 50% Equity StakeIn 1-Family Pool from Failed Banks
WASHINGTON-RoundPoint Mortgage Servicing Corp. has won a 50% equity stake in a $480 million pool of single-family loans that were culled from failed banks in states with some of the highest foreclosure rates.
The Charlotte, N.C., servicer paid $34.4 million in cash for the right to manage the portfolio for the Federal Deposit Insurance Corp.
The troubled loans are in a limited liability company and the FDIC and Roundtable will share in the proceeds from the workouts.
The FDIC has a 50% equity interest as the receiver of the failed banks.
"RoundPoint's unique high-touch approach to special servicing and asset management creates value by aligning the interests of borrowers and asset owners," said Shaun Ahmad, president of RoundPoint Capital Group.
RoundPoint Capital Group will provide asset management services and RoundPoint Mortgage Servicing will service the loans.
The FDIC said it conducted a competitive auction for the residential loan portfolio on Feb. 24 and the sale was closed April 1.
About 51% of the 3,373 loans are 30 days or more past due and 80% of the loans are from three states-Florida, Georgia and Arizona.
Vickie Lester is the president of RoundPoint's servicing subsidiary. Lester previously served as vice president of loss mitigation at Citi Mortgage. RoundPoint Capital also has a mortgage subsidy that originates mortgages and provides special programs to assist financial institutions refinance distressed assets.