The auction of nonperforming loans will remain strong for six more years, with hedge funds and private investors continuing to drive the market, according to specialty servicer FCI Lender Services, Anaheim Hills, Calif.
Gordon Albrecht, an FCI executive vice president, and other executives who play in the NPL space said over the past several weeks they have seen a definite pickup in loan auctions of troubled residential loans.
FCI claims it is the largest servicer of privately held mortgages with a portfolio in excess of $2 billion.
"There was a huge disconnect in the market between buyers and sellers," said Albrecht, a sentiment echoed by other players in the market, "but all that's changed."
Jon Daurio of Kondaur Capital, a buyer and seller of NPLs, told National Mortgage News that the first quarter was one of the busiest he's seen in terms of offerings.
"Billions were available for sale," he said. "I think we'll see even more in the second quarter."
