The Small Business Administration just finished off its Asset Sale # 6 auction, garnering approximately $465 million in winning bids for a portfolio primarily consisting of residential and business disaster assistance loans (seasoned two-plus years). The aggregate balance of the portfolio was $656 million from 30,021 loans.
The portfolio also includes a small portion of 7(a) general business loans and certified development company loans (504 loans).
According to a spokesperson at the SBA, the successful bidders included Lehman Brothers, Capital Crossing Bank, The Cadle Co., Atlantic National Trust, and Pramco II, LLC. Lehman is said to have come away with the bulk of the portfolio, although official figures will not be available until the closing.
Lehman has in the past securitized both distressed and disaster assistance loans purchased via auction from the SBA. Last summer, Lehman brought $400 million worth of these loans to market through its issuance vehicle Structured Assets Securities Corp. (SASCO 2001-SB1).
Earlier this year, Bay View Financial Trading Group included a portion of disaster relief loans it had won in auction from the SBA in a home-equity deal. These loans - particularly on the residential side - are generally low coupon, single-family second lien mortgages.