FDIC Closes Auction on Servicing Rights to 3,373 Mortgages
RoundPoint Mortgage Servicing Corp. successfully bid for an equity interest stake in the assets of failed banks in an auction held by the Federal Deposit Insurance Corp. (FDIC). The equity interest stake, pooled together from 19 failed banks in FDIC receivership and titled Multibank Structured Transaction Single Family Residential 2010-1, sold for $34.4m. Collectively, the loans have an unpaid principal balance of approximately $490.7m. According to the FDIC, nine different qualified groups submitted bids late in February in order to purchase either a 50% leveraged ownership interest or a 20% unleveraged ownership interest in Multibank. RoundPoint's winning bid was submitted on the leveraged ownership interest and the FDIC will hold the remaining 50% equity interest in its receivership capacity and will share in the returns. The portfolio consisted of 3,373 single-family residential mortgage loans, of which about half were more than one payment past due. Approximately 80% of the collateral of the portfolio is located in Florida, Georgia and Arizona. The RoundPoint bid equates to 42% of the unpaid principal balance of the portfolio, and the servicer will be responsible for managing the loans. The 19 participating FDIC receiverships provided financing to Multibank by issuing approximately $137.5m of corporate guaranteed notes. The FDIC guaranteed notes will receive payments of interest and principal on a monthly basis. "RoundPoint's unique high-touch approach to special servicing and asset management creates value by aligning the interests of borrowers and asset owners," said Shaun Ahmad, president of RoundPoint. "[Our] fully integrated platform and proprietary technology was specifically designed to address the needs of the current housing environment and help investors and homeowners find alternatives to foreclosure." More information on the assets, and all documents related to it, will eventually be posted to the FDIC Web site, a spokesman said. The FDIC continues to find ways to offload assets from banks in receivership. Lately the institution offered the assets of certain failed banks through structured finance note transactions. Write to Jacob Gaffney. The author holds no relevant investments.