Wells Fargo, which has emerged as a constant seller of delinquent mortgages, is offering roughly $350 million worth of whole loans, some of which are nonperforming, according to investment banking sources.
A Wells spokeswoman declined to discuss the matter. One source said that roughly $140 million of the $350 million is considered nonperforming in nature. The balance of what is being offered is performing, a source said.
Wells, the nation's largest originator of residential product, sells NPLs itself and does not use a middle man.
The NPL market has been on a bit of a roller coaster ride the past few months with a wide disparity emerging once again between the "bid" and "ask" price on pools.
Some traders and investors told National Mortgage News that in recent months sellers have become unrealistic in their asking prices, especially with home values continuing to come under pressure. "We see a lot of deals where the seller is asking for 90 cents [of the broker price opinion] and the thing is worth only 30 cents," one trader said.