FHA Will Get Back to Selling Nonperforming Loans in June
The Federal Housing Administration will resume its quarterly sales of nonperforming loans in June after taking a break this quarter.
The last sale took place Dec. 17, when the FHA unloaded 13,661 nonperforming loans with an unpaid principal balance of $2.6 billion for 51.6% of face value. The sale attracted 23 bidders and Bayview Acquisitions LLC won six of the 14 loan pools.
The agency did not schedule a sale for the first quarter because it fell behind in processing the sales, partly due to budget cuts and the federal government shutdown in October, according to FHA commissioner Carol Galante.
“It was mechanical,” she says. “We needed to take a little breather to process these efficiently.”
The FHA has been conducting these nonperforming loan sales since September 2010. The loans are no longer insured, but the successful bidders are forbidden to foreclose for at least six months. This restriction is designed to encourage the new servicer to restructure the loans and keep the borrowers in their home.
DebtX marketed the December FHA loan sale and SEBA Professional Services LLP managed the sale.