What We're Hearing

We’re picking up more intelligence on Wells Fargo’s recent auction of $600 million worth of non- and sub-performing subprime loans. (This is the portfolio that Arch Bay Capital of Irvine bought.) The bank asked bidders to post good faith money of $75,000. Wells supposedly had valued the loans (on its books) at 12 cents on the dollar. The sale price to Arch Bay was reportedly 35 cents on the dollar. Arch Bay, meanwhile, does not have a large staff and is known to outsource some of its underwriting and servicing functions. Meanwhile, there is talk in the market that a large holder of subprime and alt-A loans is contemplating some of these assets to get them off its books – as opposed to trying for a sale in the distressed loan market...