HOUSINGNEWS REPORT
FEATURED ARTICLE
$20 Billion in Distressed Loan Sales
$13,484,688,271 Unpaid Principal Balance
If you are a property guy and not a note guy, you are saying ‘there’s no inventory, (but) it’s hard to argue with $20 billion in distressed notes selling in the last 20 months, and that’s just the ones reported in the press.”
Non-Performing Loans Sold
80,796
FHA/HUD
$8,457,000,000 Unpaid Principal Balance
Non-Performing Loans Sold
41,649
Eddie Speed Founder of NoteSchool Southlake, Texas
construction loans were originated in Ohio in 2016, up 10 percent from 2015 to the highest level since 2008. Total dollar volume of those construction loans was more than $1.2 billion, up 15 percent from less than $1.1 billion in 2015. The number of construction loans secured by vacant land in Ohio increased 80 percent, while the dollar volume of those loans increased 121 percent from 2015 to 2016. Builders and developers acquired more vacant land in Ohio for residential development in 2016. Sales of residential vacant land in the state increased 9 percent in 2016 compared to 2015, compared to an increase of 2 percent in single family home sales over the same time period, according to ATTOM data. DiMeco is observing a similar upward trend in new development in Boston, and he believes that will help ease the
inventory constraints placing upward pressure on home prices there. “The good news is there is a ton of building going on in Boston,” said DiMeco, ”They are doing a ton of new development … that will slow down the inflation in the market, it will help that out.” Statewide in Massachusetts sales of residential vacant land increased 65 percent in 2016 compared to 2015 to a new all-time high as far back as data is available, according to ATTOM Data Solutions. In Boston, residential vacant land sales increased 81 percent during the same time period compared to a 1 percent decrease in both single family sales and condo sales. $20 Billion in Distressed Notes Although the most public face of distress — foreclosure auctions and bank-owned sales — have become highly competitive,
there are still distressed deals available for those willing to think creatively, according to Eddie Speed, founder of NoteSchool, a company that trains investors how to buy “notes” or mortgages. “If you are a property guy and not a note guy, you are saying ‘there’s no inventory,’” said Speed, explaining that many of the big banks and government sponsored enterprises — Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA) — have been steadily selling off billions of dollars of delinquent loans to investors rather than foreclose on those loans themselves. “It’s hard to argue with $20 billion in distressed notes selling in the last 20 months, and that’s just the ones reported in the press. … Everyone knows there is a big pile of inventory. Fannie, Freddie and FHA have admitted to $100 billion.”
ATTOM Data Solutions • P8
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