Two private investors have teamed up to buy a roughly $1.2 billion pool of mostly nonperforming residential whole loans offered by the Federal Deposit Insurance Corp. (FDIC), investment banking officials and sources close to the deal confirmed to National Mortgage News.
The NPLs belonged to AmTrust Bank, a large Cleveland-based thrift that failed late last year. An official announcement on the deal could come this week, said one official familiar with the matter.
At press time the FDIC had no comment. The agency currently is marketing $21 billion of residential servicing rights that AmTrust held but that was not passed onto the buyer of its thrift franchise, New York Community Bancorp, Westbury, N.Y. Milestone Merchant Partners is brokering the servicing package for the FDIC.