WASHINGTON, DC—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.
The loans will be sold in eight national pools ranging in size from $94.5 million to $804.5 million.
Bidding for the portfolio will begin Sept. 30 at the DebtX website.
This is HUD's sixth, multi-billion sale handled by DebtX since September 2012. Through DebtX, HUD has offered more than 100,000 residential loans since then.
This particular offering is part of HUD's national portfolio and not under the Distressed Asset Stabilization Program it formed this year. HUD held its first note sale under that platform in May, which DebtX also handled.
The June 11 the national sale was the most competitive sale to date, drawing a larger number of bidders and bids per pool than previous sales.
The winning bidder was Loan Star Funds with a weighted average bid that was 77.6% of the collateral value.
These sales are "no longer a one-off transaction type for HUD, the agency is now selling billions and billions of dollars of these loans on a regular basis," DebtX CEO Kingsley Greenland told GlobeSt.com in an earlier interview.
"The market is incredibly deep on the buy side," Greenland said. "On the sell side, HUD is far and away the largest seller."
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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.
