Wells Fargo & Co., auctioned off a $185 million package of nonperforming residential loans this week, according to bidders and advisors who play in that market.
At press time Wells had not commented on the purported sale. Most bank sellers of NPLs will not publicly disclose their auctions.
One bidder told National Mortgage News that Wells had established a reserve of 50 cents on the dollar for the troubled loans.
The nonperforming loan market could slow in the wake of the nation's foreclosure crisis, but some bidders believe that sales might actually increase as sellers capitulate on pricing.
"You have to keep in mind that many banks have got their reserves in line and with bank earnings improving they can now afford to take a hit," said one source.
