Over a billion dollars in mortgages have recently been put on the market or sold.
Around $858 million in mortgages owned by Residential Capital LLC were put up for sale by GMAC Inc. last month in its effort to focus on residential lending, Bloomberg reported. The portfolio, being marketed by Mountain Funding LLC, included mostly builder and development loans.
Marshall Ilsley Corp. sold 800 primarily non-performing residential loans for $297 million on July 31, according to an announcement. About two-thirds of the loans were secured by Arizona properties. The sale resulted in $151 billion in additional second-quarter charge-offs.
In July 2008, Lone Star Funds reached an agreement to acquire $9.3 billion in mortgage and servicing assets for $5.9 billion in cash and debt. Now Lone Star plans to sell $239 million in subprime-backed securities from that deal, according to Bloomberg.
A portfolio of 321 single-family mortgages acquired in July by SilverLeaf Financial LLC is now being marketed on an individual loan basis, a July news release stated. Each of the non-performing first mortgages ranges in value from $60,000 to $100,000.
Bidding starts at 20 cents on the dollar, and SilverLeaf is targeting “average Joe” investors. The loans are being unloaded because “it would be too time-intensive for us to do 321 separate work outs on all these notes,” SilverLeaf Chief Executive Officer Shane Baldwin said in the statement.
BigBidder.com was marketing in July a $500,000 pool of re-performing loans. The auction was scheduled to end on Aug. 5. The Newport Beach, Calif., firm said it recently reached $100 million in total notes for auction.
A warehouse lending source recently told MortgageDaily.com that hedge funds and other Wall street firms are bankrolling originations of $1 billion to $2 billion a month for some big mortgage banking players. The loans are being accumulated for issuance in a Ginnie Mae bond.
