We continue to hear reports that few large non-performing loan portfolios are selling these days. Case in point is a recent $240 million auction of NPLs by H&R Block. The mortgages belonged to its now defunct subprime division, Option One Mortgage. One observer noted that there was strong interest in the portfolio but "the bid price was a little low." Also, professionals who play in the NPL space increasingly believe that the Treasury Department's PPIP (Public-Private Investment Program) auction program may never get off the ground. And changes in market-to-market accounting rules (courtesy of FASB) concerning writedowns on non-performing loans are dampening the appetite of banks to get ailing loans off their booksâ¦
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