WASHINGTON, DC-By the end of the month, the Federal Deposit Insurance Corp. will have gone to market with $409 million of residential mortgage bonds that the agency inherited from some 17 failed institutions, a source tells GlobeSt.com. This RMBS, wrapped in an FDIC guarantee, is part of the agency’s growing involvement in the securitization market.

By year-end, however, the FDIC will have expanded its reach even further into the capital markets with the securitization of performing loans, Tom Galli, a partner with Greenberg Traurig, tells GlobeSt.com. With that piece in place, he says, the agency’s participation in the securitization markets could have a real impact on the real estate finance community.

Thus far, the FDIC’s involvement in the capital markets has been limited to two types of transactions, Galli explains: the securitization of purchase money notes from its structured sale transaction program and the securitization--or rather, re-securitization--of RMBS. With the former, the agency has done approximately three deals with several others scheduled. As for the latter, there has been one RMBS transaction that has closed so far, with the second scheduled to price this week. According to the Wall Street Journal, Royal Bank of Scotland Group is putting that deal together.

The point of these securitizations, Galli says, has been to maximize proceeds for the agency, and by extension, the taxpayers. That will be the driver behind the securitization of performing loans as well, he says. "But the FDIC has other objectives as well, such as serving the larger economy and breathing life into the securities market." The agency recognizes that a performing loan securitization will give a much-needed boost to the real estate capital markets, he says.