February 2016

borrower/homeowner rents the property, collecting rent evenwhile not makingmortgage payments. “You’re either going to pay me or go into bankruptcy by the end of this,” said Woods, who also co-hosts a weekly podcast, NoteMBA, about the non-performing loan business. Woods, who is based in Orlando, jumped on the loan-buying train in 2012 just as it was gaining steam. RealtyTrac loan assignment data — including sales of both performing and non-performing loans — shows that loan sales peaked at more than 687,000 in the second quarter of 2012, up 57 percent year-over-year and up 341 percent from the third quarter of 2010. NPL Sales Gaining Steam

milestone in the world of non-performing loans because it was when the U.S. Federal Housing Administration (FHA), kicked off its Distressed Asset Stabilization Program (DASP) — selling non-performing loans insured by the government agency. FHA sold just 410 non-performing loans through the new program in the third quarter of 2010, but then quickly ramped up in 2011 and 2012 before peaking at more than 50,000 sales of non-performing loans in 2013, according to loan sales summaries provided on the U.S. Department of Housing and Urban Development (HUD) website. While FHA non-performing loans sales gradually tapered off in 2014 (39,262) and 2015 (15,624), sales of Fannie Mae- and Freddie Mac-backed loans accelerated during that same time period.

Robert Woods Co-Host of Note MBA podcast Orlando, Florida

“ When borrowers … reach out to you … you have the ability to make this a win-win. You don’t have to be an aggressive prick. ”

The third quarter of 2010 was a significant

Freddie Mac launched its non-performing Continued Next Page

SOURCE: RealtyTrac


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