H OUSING N EWS R EPORT
sell to smaller investors.
the FHA program alone — the sixth biggest buyer to date in the program, according to a HUD report published in February. But large institutional buyers such as Carrington may now be interested in selling off some of their NPL portfolios to mid-sized investors like Speed, who in turn sells them to mom-and- pop investors. “We catch what the bigger firms don’t want to keep,” said Speed, who said he was introduced to the NPL market in the 1980s, buying them from the Residential Trust Corporation (RTC) in the wake of the Savings & Loan crisis. “At some point there is a subset of these loans that do not fit their investment philosophy.” That subset of loans being offloaded by the big institutional investors is evident in the February HUD report, which shows that 6.8 percent (5,394) of the loans sold through the FHA program have been re-sold as “whole loan sales” from the original purchaser to another entity. Meanwhile another 51.4 percent (40,644) of the NPLs sold through the FHA program are still delinquent and represent a potential pool of more loans to
“We have seen more assets in the last six months than we saw in the previous 24 months,” said Speed, adding that while he is always in the business of buying performing loans, there are only certain windows where he buys non-performing loans. “We think the calendar for the next five years will be one of the biggest windows for that.” As more non-performing loans waterfall down from the big banks to large institutional investors to mid-size note brokers and finally to mom-and-pop investors, the borrowers of those loans may be in for a surprise, according to Chase Thompson, who co-hosts the NoteMBA podcast with Woods. “Many people are used to a Bank of America or Wells or Chase who just drag their feet on foreclosure because they have thousands of them,” said Thompson, who is based in San Antonio but buys notes in many markets across the country. “They aren’t used to “You’re My One Foreclosure This Month”
Chase Thompson Co-Host of Note MBA podcast San Antonio, Texas “ Many people are used to a Bank of America or Wells or Chase who just drag their feet on
foreclosure because they have thousands of them. They aren’t used to someone who is saying ‘you’re one my foreclosure this month.’ ”
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