WASHINGTON, DC-DebtX is taking $5 billion in non-performing residential loans from the Department of Housing and Urban Development to market, in what is one of the largest offerings of its kind in this market cycle. Certainly it is the largest offering of non-performing HUD loans marketed through a sealed bid public process, DebtX CEO Kingsley Greenland tells GlobeSt.com.
The offering is backed by 29,000 non-performing loans and supported with 16 million pages of loan documents, he says.
There will be three bid dates. On October 30th and November 20th, HUD will offer approximately 24,000 loans through National Pools and on December 10th it will offer approximately 5,000 loans through Neighborhood Stabilization Outcomes pools.
The NSO pools will include loans from Atlanta, Baltimore/Washington, DC, California, Indianapolis, and Las Vegas.
The offering is part of HUD's push to dispose of distressed home loans in the U.S. This particular sale is the fourth transaction DebtX has done for HUD.
Previous deals have clocked in at $3 billion, which makes this transaction the largest DebtX has done for the department, Greenland says. "This size deal tells us a lot of things about the state of the market. It show there is plenty of liquidity out there and that servicers who are contributing the loans are getting their hands around the problem."
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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.
