What We're Hearing

In the Monday print edition of National Mortgage News we'll be providing an update on the nonperforming loan (NPL) market. We're hearing solid reports that auctions are gaining steam -- all this comes despite scattered reports that certain hedge funds might be leaving the sector. One interesting thing we hear is how quickly some purchasers of distressed loans "flip" the pools they're buying. (Certain Wall Street trading desks are notorious for this.) Moreover, we're told that some "primary" bidders are buying based on a flip price that they have already negotiated. I'm not sure if this is fact or fiction. Meanwhile, if you're looking for a solid sign that the U.S. economy is really on the mend try this one: Over the past few weeks the dollar amount of C&I (commercial and industrial loans) extended to businesses had grown by $31 billion. Now if only, this business activity would lead to new hiring and an increase in the number of potential home buyers...