It’s a common trend for banks to get their house in order during the fourth quarter of a fiscal year, but this year, it seems there’s a larger pool of eager buyers for soured real estate assets.
Flagstar Bancorp said Monday that it has closed on a sale of $474 million in nonperforming first-mortgage home loans. The transaction cuts the bank’s level of residential first-mortgage nonperformers by 70 percent. The name of the buyer was not disclosed, but according to American Banker, Flagstar, which is the largest publicly held savings bank headquartered in the Midwest, sold off the assets for 44 cents on the dollar.
Whitney Holding Corporation in New Orleans announced late last month that it has agreed to sell approximately $180 million of nonperforming loans during the fourth quarter. Whitney’s offering is comprised of both residential and commercial mortgages primarily in the state of Florida.