In a Bloomberg article, hedge funds and private-equity firms are betting on delinquent home loans being sold by the U.S. Federal Housing Administration as the government agency accelerates debt sales to avert a bailout and stem foreclosures.

“The FHA could easily be the largest seller, if they sell 40,000” mortgages, Louis Amaya, chief investment officer for National Asset Direct Inc., a nonperforming loan investment firm with offices in San Diego and Stamford, Connecticut.