Loan sale advisor DebtX is selling more than $1bn in loan participations from 15 banks in Federal Deposit Insurance Corp. receivership. The portfolio for sale consists primarily of commercial real estate loan participations from the failed banks with concentrations in Georgia, Texas and western US. DebtX is offering the 421 loans in the portfolio on an individual basis, with bids due by Sept. 1, 2009. “Given the size and diversity of this portfolio, banks across the US will have a unique opportunity to purchase high-quality loans,” said CEO Kingsley Greenland. “DebtX expects a significant interest from banks seeking this type of product.” The “participations” relevant to the DebtX sale only involve the loans, rather than the servicing rights, a DebtX spokesperson told HousingWire. A loan participation agreement is usually considered an “arms-length commercial contractual relationship,” according to The First American Corp., but participating lenders can take one of several different relationships with the lead lender. This relationship may involve, according to First American, a sale of interest in the loan, a joint venture or partnership or an agency relationship between the participating and lead lender. Or the lead lender may hold the title in trust for the participant as a beneficiary. Write to Diana Golobay.