FCI: Nonperforming Loan Auctions Strong Through 2016

Editor’s Note: A strong indication that the financial services sector expert this foreclosure mess to be going strong for years to come.

FCI: Nonperforming Loan Auctions Strong Through 2016

April 20, 2010

By National Mortgage News Online

The auction of nonperforming loans will remain strong for six more years, with hedge funds and private investors continuing to drive the market, according to specialty servicer FCI Lender Services, Anaheim Hills, Calif.

Gordon Albrecht, an FCI executive vice president, and other executives who play in the NPL space said over the past several weeks they have seen a definite pickup in loan auctions of troubled residential loans.

FCI claims it is the largest servicer of privately held mortgages with a portfolio in excess of $2 billion.

“There was a huge disconnect in the market between buyers and sellers,” said Albrecht, a sentiment echoed by other players in the market, “but all that’s changed.”

Jon Daurio of Kondaur Capital, a buyer and seller of NPLs, told National Mortgage News that the first quarter was one of the busiest he’s seen in terms of offerings.

“Billions were available for sale,” he said. “I think we’ll see even more in the second quarter.”

7 Responses

  1. “Stealing homes?” – Absolutely correct – and no one even knows who is doing it. And the government and courts have allowed the process to continue despite large profits by parties not identified or named in foreclosure actions.

    I agree with all the fraud regarding forgeries and false documents – but, it is time to address the fact that the real party in interest is not being identified in courts across the country.

    Time to speak out. Unless we speak out – courts will continue to oblige what is going on. And, unfortunately, set precedent.

  2. If you look further into this company and the people that surround it, my best guess is that this company is party to the others that are “stealing” homes behind the homeowner’s back here in CA.

  3. Mike- your statement(s) regarding dead debt is thought provoking, yet you provide no further info. Can you elaborate? Thank you

  4. I do not think just anyone can buy them. These are organized distressed debt buyers, hedge funds, and private equity firms that purchase the NPLs in bulk from the Wall Street investment and commercial banks. Assignment to Trustee for former SPV trust is just a front in order to conceal identify of debt buyer and relationships with the banks. A trustee “bank” for certificate holders (really the security underwriters) to such and such Trust carries more weight in court rather than a debt buyer. Plus, the debt buyers would have to provide additional assignments and documents in court. Foreclosure attorneys just find it more persuasive and easier to go with assignment to SPV trustee. Not only is this false – the trust went belly-up quite some time ago.

  5. Beware when you buy them, many are stolen property out of “dead lenders” vaults by employees
    who never got paid when the correspondent lender
    went under. You can identify them by the fact they
    have no endorsements on them.
    Robber banks like WF, USB, DB and others
    love to foreclose on them. New Century loans
    are real favorites among the robber banks!

  6. Neil
    Where can we buy these?

  7. There is great secrecy as to who NPLs are sold to. Courts are not aware of this and trust everything submitted by foreclosure attorneys. US government supports sale of NPL to clear financial institution books of NPLs which drag down capital and profit. Former Federal Reserve Chief Greenspan encouraged such debt buying after 9/11. The sale of NPLs are not publicly disclosed.

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