Royal Bank of Scotland

FDIC Closes on Pilot Securitization of Mortgages from 16 Failed Banks

By Carrie Bay | 08/02/2010

The FDIC has closed on a sale of securities as part of a securitization backed by approximately $471.3 million of performing single-family mortgages from 16 failed banks. This pilot program marks the first time the FDIC has sold assets in a securitization during the current financial crisis a method which could allow the federal agency to clear billions of dollars in seized loans from its books, while maximizing the value of these assets for the failed banks' creditors.
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FDIC Taps Secondary Market to Sell $409M in Failed Banks' Home Loans

By Carrie Bay | 07/26/2010

The FDIC has amassed a large portfolio of nonperforming real estate loans seized from failed banks. While the agency has managed to broker deals with most acquiring institutions recently to absorb "essentially all" of the failed banks' loans, some transaction announcements still contain the language, "the FDIC will retain the remaining assets for later disposition." In order to fast-track the sale of these assets, the FDIC is turning to the secondary market, with an offering of $409 million of mortgage bonds from 17 bank closings expected to price mid-week.
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