A huge portfolio of residential loans is trading hands in the secondary mortgage market, with an American financial institution selling to a unit of one based in Switzerland.
At stake are approximately $17 billion in U.S. single-family loans. The mortgages are a combination of loans in first- and second-lien position.
An announcement Tuesday called the transaction “complex.” But strong market demand enabled faster execution of offering than originally expected.
That is according to R. Scott Blackley, the chief financial officer of Capital One Financial Corp., which is selling the loans to Credit Suisse AG-subsidiary DLJ Mortgage Capital Inc.
The loan sale follows Capital One’s previously announced exit from the origination of residential and home-equity loans.
With an expected second-quarter gain from the sale in hand, McLean, Virginia-based Capital One plans to use its existing board authorization to
resume repurchasing shares of its common stock through the end of the current quarter.
Wells Fargo Securities LLC and Morgan Stanley & Co. LLC acted as financial advisors to Capital One.
