Sallie Mae To Lose $95M on Mortgage, Real Estate Sale
Student loan giant SLM Corp. (SLM) will recognize a loss of as much as $95m on the sale of mortgages and real estate-related assets this quarter, according to a Securities and Exchange Commission (SEC) filing. The Reston, Va.-based lender is commonly known as Sallie Mae. In the filing, the company said the fourth-quarter loss comes from the sale of “substantially all” mortgage-loan and real-estate assets of SLM’s GRP Loan LLC and GRP Strategies LLC units to Credit Suisse subsidiary DLJ Mortgage Capital. Sallie Mae entered into an agreement to guarantee GRP’s post-closing obligations with respect to the sold assets. DLJ paid $28.7m for the assets in the deal that closed on Monday, the filing said. Write to Austin Kilgore.