Yesterday, the FDIC announced that it had completed the sale of a 50% equity interest in a limited liability company (LLC) holding certain residential mortgage loans of 19 failed bank receiverships. The sale was conducted through an auction held on February 24, 2010.
The winner was Roundpoint Mortgage Servicing Corporation, which successfully outbid eight competitors with its bid of $34.4 million in cash for a 50% leveraged ownership interest. The FDIC will retain the remaining 50% equity stake in the LLC, and Roundpoint will provide management and servicing of the LLC’s assets.
The LLC holds a portfolio of 3,373 single family residential mortgage loans with an unpaid principal balance of approximately $490.7 million. Roughly half of the loans are 30 or more days delinquent, and 80% of the collateral properties are located in Florida, Georgia and Arizona.
In addition to the auction, the FDIC has recently taken other measures to transfer seized bank assets into the hands of private investors. For example, in March the FDIC completed the sale of $1.8 billion principal amount of notes backed by 103 non-agency residential mortgage backed securities from seven failed bank receiverships.