FDIC Auctioning Loans from Failed Banks

By Chris Carey, Bailout Sleuth

The Federal Deposit Insurance Corp., which holds billions of dollars in assets from failed banks, is selling nearly $182 million in loans through three separate auctions.

The auctions listed on the FDIC’s Loan Sales Announcements web page represent a wide range of performing and non-performing loans. The agency offers the loans through a small group of advisory firms, which market the assets to potential investors, assist then with due diligence, then conduct the sales.

BailoutSleuth has begun tracking these deals as part of our continuing coverage of the upheaval in the financial industry.

The FDIC took bids Wednesday on approximately $60 million of assets from the closed Community Bank of Nevada.  The portfolio, marketed by First Financial Network Inc., consisted of 430 commercial and industrial loans and commercial real estate loans, 58 percent of which are performing.

Another FDIC contractor, First Annapolis Capital Inc., is marketing $119 million of performing credit-card loans from the failed Silverton Bank of Atlanta, Ga.  The offering announcement describes the portfolio’s balance as roughly 53 percent consumer accounts and 47 percent business accounts.

Although the FDIC website has yet to post deadlines for due diligence and bids, the offering announcement on First Annapolis’ website lists them as Dec. 7 and 8, respectively.

Meanwhile, The Debt Exchange Inc. is presenting a single residential loan pool totaling $2.7 million, which came from the receivership of Market Street Mortgage.  The non-performing pool is secured by an unspecified number of condominiums in a Georgia residential complex. The sale has a Dec. 8 bid date.

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