ABS

RoundPoint Gets Equity Stake in Troubled Loans Auctioned by FDIC

Published 1 Min Read

RoundPoint Mortgage Servicing Corp. has won a 50% equity stake in a $480 million pool of single-family loans from several hard hit states that it will manage for the Federal Deposit Insurance Corp. (FDIC).

The Charlotte, N.C., servicer paid $34.4 million in cash to purchase its equity stake in a limited liability company that will own the troubled assets.

FDIC retained a 50% equity interest as the receiver of the failed bank assets and it will share in the returns of the limited liability company with RoundPoint.

About 51% of the 3,373 loans are 30-days or more past due and 80% of the loans are from three states-Florida, Georgia and Arizona.

The FDIC said it conducted a competitive auction for the portfolio on Feb. 24 and the sale was closed on April 1.


For reprint and licensing requests for this article, click here.


More From Asset Securitization Report

FDIC Picks Colony Capital as Winning Bidder for Equity Interest in CRE Loans

The Federal Deposit Insurance Corp. (FDIC) closed on a sale of 40% equity interest in a limited liability company (LLC) created to hold assets with an unpaid principal balance of around $1.85 billion from 22 failed bank receiverships. Barclays Capital advised the FDIC on the transaction. The winning bidder of the multibank structured transaction is Colony […]