WASHINGTON, DC—The Federal Deposit Insurance Corp. is marketing a portfolio consisting of $90 million worth of performing and non-performing loans. Oklahoma City-based First Financial Network will be handling bidding for the portfolio, which includes loans from several failed financial institutions.
The portfolio consists of approximately 129 performing and non-performing residential, commercial real estate, consumer and business asset loans and loan participations.
Online due diligence will be available beginning September 22 to qualified bidders at First Financial's website with bids due on October 21, 2014.
The loans have been stratified into pools based on collateral type and performance. The sale is likely to attract secondary market interest, Bliss Morris, founder and CEO of FFN, says in a prepared statement.
First Financial handled a $174 million offering of performing and nonperforming loans for FDIC in April. This group of loans originated from the failed The Bank of Union in El Reno, OK.
That portfolio consisted of approximately 511 C&I, agricultural, residential, commercial real estate and consumer loans.
Bank failures, fortunately, are becoming less frequent as the economy recovers. When FDIC released its second quarter 2014 results for FDIC-insured institutions last month, it noted that number of problem banks is now 60% below the peak in 2011, and the number of bank failures continues to trend down.
Separately, the Department of Housing and Urban Development is putting 15,000 nonperforming residential loans with an unpaid principal balance of $2.3 billion out to bid. DebtX is marketing the loans for the agency.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
