The Federal Deposit Insurance Corp. (FDIC) is expected to take final bids on the $23 billion AmTrust servicing portfolio next week with a sale coming by the end of September, according to investment bankers familiar with the offering.
To date, no names have emerged concerning potential bidders, though it's anticipated that a few of the nation's largest players in the servicing arena (the megabanks) will at least take a look at the offering.
One servicing advisor who is based out West and didn't want his name used said he believes the AmTrust receivables "will be a nice deal for someone but it won't trade at a premium." The bid deadline is August 30, he said.
The delinquencies on the package are relatively low. The FDIC's advisor on the sale is Milestone Advisors, which has offices in Washington, California, and Florida.
AmTrust Bank of Cleveland, which at one point last year ranked third among all residential wholesalers, was seized by the government in December with a majority of its assets sold to New York Community Bank, Westbury, N.Y.