Saw this press release cross the wires this afternoon, from a small OTC firm specializing in bulk non-performing loan acquisitions:

Oxford Funding has recently been given authority to bid directly with a top tier mortgage lender to purchase under performing subprime residential and commercial loans. Oxford Funding Corporation buys under performing subprime loans at significant discounts, and then rehabilitates them for sale at substantial margins. “The subprime meltdown presents a historic opportunity for Oxford Funding to buy deeply discounted mortgage portfolios for rehabilitation and resell them at full face value,â€? stated Mr. William Carmichael, Director of Corporate Relations. “The ability for Oxford to deal directly with national lenders is a major coup,â€? Robert Dunn, President explained. “Having this ability reduces the fees and add-ons presented by third party brokers and ensures we’re buying great loan portfolios at the best price.â€? Typically, asset recovery corporations like Oxford purchase under performing loan portfolios through third parties and brokers who reduce the profit margins by adding service, maintenance and handing fees. By contrast Oxford negotiates directly with the owners of the securities.

Got to love the claim that they “buy discounted” and sell “at full face value.” Guess it depends on what sort of rehab rate your expect and what your definition of “full face value” is, but I can tell HW readers that Oxford isn’t the only NPL acquisition specialist that sees opportunity in the current subprime crash to acquire assets at huge discounts. What I haven’t seen yet — somewhat surprisingly to me — is a move by the large consumer distressed debt purchasers to start trading in distressed mortgages. If this is the ‘historic opportunity’ some paint it to be, I have to think you’d see the big boys from consumer credit decide to roll the dice.