Recent secondary marketing transactions include the sale of two residential portfolios of government mortgages, a portfolio assembled from the assets of failed banks and a subprime securitization. Buyers in the transactions are often investment funds, while banks are frequently the sellers.
The Department of Housing and Urban Development has been marketing home-loan portfolios. Among the recent offerings were SFLS 2011-3, a portfolio of single-family mortgages without FHA mortgages insurance, and SFLS 2011–2, which also included uninsured residential loans.
A portfolio of 1,453 single-family loans for $282 million was acquired from the Federal Deposit Insurance Corp. by MountainView Public Private Investment I LLC and Geneva House LLC. The deal calls for the FDIC to retain a 60 percent interest in the portfolio.
MountainView said that the portfolio was assembled from the assets of 48 failed banks. The servicer on the loans will be Statebridge Company LLC.
US Debt Ventures said earlier this year that it acquired a $28 million portfolio of first mortgages from a regional financial institution. The 87 loans in the portfolio are backed by residential properties in Florida.
Through mid-2011, US Debt said it acquired more than 7,000 distressed loans.
Fortress Investment Group LLC subsidiary Springleaf Financial recently issued a $242 million residential mortgage-backed security with a 51 percent in credit enhancement, the Wall Street Journal reported. The notes, backed by $497 million in previously originated non-defaulted subprime mortgages, were expected to yield 4 percent.
An agreement to acquire $198 million in performing loans and classified assets was reached by Värde Partners Inc., affiliates of FirstCity Financial Corp., Mountain Real Estate Group and Shelving Rock Partners. The seller in the transaction is First Federal Savings and Loan Association.
That transaction was expected to close on Thursday.
