Bank of America Said Selling $1.2 Billion in Home Loans
ByBank of America Corp. is offering $1.2 billion of mostly delinquent home loans, extending a series of sales by lenders seeking to pare holdings and meet demand by investment firms for soured mortgages.
The company is selling five pools consisting of nonperforming debt, loans that have been modified and resumed payment, and some that haven’t defaulted, according to a person with knowledge of the matter. Four of the pools are being serviced Bank of America and one is managed by Ocwen Financial Corp., said the person, who asked not to be identified because the planned sale is private.
Banks, forced to pledge more capital for some assets they hold in the face of financial regulations, have sold or offered about $18 billion of defaulted home loans so far this year, according to debt broker Mission Capital Advisors. The buyers have included hedge funds and private-equity firms hungry for nonperforming loans as a way to bet on distressed real estate as foreclosures dry up, with the purchases often financed through the bond market…
Bank of America Said Selling $1.2 Billion in Home Loans
