Two big banks said to be selling $2B of troubled home loans

by MPA13 Nov 2014
In an effort to meet demand and avoid the costs of holding troubled debt, two major banks are said to be selling around $2 billion of soured mortgages.

Bank of America and Citigroup put about $1 billion each of nonperforming and re-performing mortgages on the market, according to a report from Bloomberg. The sales are in an effort to meet demand from hedge funds and private equity firms that are seeking to profit from rising home values.

HUD is also selling loans, including a current offering of about $1.1 billion, to reduce losses at the financially troubled FHA, according to the report.


  • by Charles Stidham | 11/13/2014 12:58:30 PM

    Would someone from MPA be so kind and find out when those "troubled" mortgages were originated? Because of right now the foreclosure rate is lass than 1% nationwide for mortgages originated since 01/01/2012. Are we still talking about mortgages from 2005-2008? Probably so since we are so close to the holidays when people start waxing nostalgic about the old days.

  • by Samir | 11/13/2014 1:13:48 PM

    YES, they wept them under the RUG...... The biggest Ponzi scheme ever!!!

  • by Rachel Norvell | 11/13/2014 1:48:48 PM

    Thanks for reading and pointing this out. We are definitely looking into this. Right now the news is still fresh and Bank of America and Citigroup are currently not replying to requests. We'll get the info posted as soon as we know.


Should CFPB have more supervision over credit agencies?