The FDIC auctions off bad debts

[marmar]

FDIC Auctions $610.5 Million in Loans From Failed U.S. Lenders
By Brian Louis


Feb. 27 (Bloomberg) -- The Federal Deposit Insurance Corp. is seeking bids for $610.5 million of unpaid loans it’s holding from failed U.S. lenders including IndyMac Bank, Silverton Bank and New Frontier Bank.

The loans are backed in part by land, developed lots and condominium construction projects, said Peter Tobin, managing director of New York-based Mission Capital Advisors LLC, the FDIC’s marketing agent and financial adviser for the offering. Most of the properties are in Colorado, California, Utah and Idaho, and about 78 percent of the debt is 90 days or more past due, according to a description on Mission Capital’s Web site.

The FDIC is disposing of real estate, soured mortgages and personal property ranging from tour buses to palm trees that once belonged to failed banks. More than 160 lenders collapsed since the start of 2009, and the tally may grow this year, with 702 firms on the FDIC’s “problem bank” list as of Dec. 31.

The sale ”is going to appeal to a broader investor class,” Tobin said. The winning bidder will take an interest in a limited liability company owning the assets in partnership with the FDIC. The auction may attract more bidders than previous sales because the portfolio is smaller, Tobin said.

The biggest piece of the package is from New Frontier, the Greeley, Colorado-based lender that failed in April. The portfolio lists $220.2 million in Frontier debt from 187 loans, with 91 percent at least 90 days overdue. ..........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=a7eWEe8AzC54&pos=5