Wells Fargo & Co. is in the market with a $200 million package of nonperforming residential loans, according to investors that have been briefed about the deal.
A spokeswoman for Wells declined to comment.
One investor told ASR sister publication National Mortgage News that the megabanks have been mostly absent from the NPL auction circuit the year, blaming their inactivity on the robo-signing settlement that was recently signed with the states and federal officials.
“A lot of these banks have been told by their lawyers that they need more time to analyze the settlement to see what the ramifications might be for [NPL] sales,” said one investor who has been active in the market.
Wells, Ally Financial, Citigroup and JPMorgan Chase were all active sellers of NPLs last year.
Meanwhile, several firms that came into being because of the NPL market have cut back on their involvement. PennyMac seems to be morphing into a correspondent lender focused on growing its servicing portfolio and production platform. The private equity investors behind Arch Bay recently fired top management there, and last year Kondaur dismissed its CEO Jon Daurio