FCI Lender Services, Anaheim Hills, Calif., said it sold roughly $8 million of problem mortgages through its auction website during the past three months.
Its 'FCI Exchange' web platform currently has listings for $600 million in mortgages, according to company executive vice president Gordon Albrecht. "About 30% [of the sellers] are our own clients," he added.
FCI is the nation's largest servicer of "private money" loans.
Albrecht noted that many of the sellers using its web exchange to unload product are private hedge funds. (The firm, which recently updated the website's technology, also offers due diligence services.)
He claims that one advantage FCI has over competing web auction sites is "the fact that we service the loans for many of these sellers."
He noted that one problem currently plaguing the NPL market is the rise of "lawyers who want to invalidate loans," a reference to legal challenges to foreclosures and the 'robo-signing' scandals.
