The Federal Deposit Insurance Corp. (FDIC) will begin taking final bids on the $23 billion AmTrust Bank residential servicing portfolio by the end of July with a winner picked shortly thereafter, investment banking sources said Wednesday.
One advisor close to the deal noted that "buyer interest remains strong" on the receivables, which have a relatively low delinquency rate. The bid date has been delayed several times.
Recently, the FDIC completed the sale of $1.2 billion of mostly nonperforming whole loans owned by AmTrust.
To date, no names have emerged regarding potential bidders on the servicing rights.
The FDIC and its investment banker on the deal, Milestone Merchant Partners, declined to comment.
The Cleveland-based AmTrust failed late last year. At one time it was one of the largest correspondent lenders in the U.S. The thrift was also a major lender to home building companies.
