In two weeks the Federal Deposit Insurance Corp. will take final bids on the $23 billion residential servicing portfolio of the failed AmTrust Bank of Cleveland, but there is little industry chatter about which investor might win the package.
Investors can buy all or part of the portfolio, but advisers familiar with the servicing market are wondering what type of representations and warranties the government will offer on the receivables.
The agency and its adviser on the sale, Milestone Merchant Partners, are saying little about the process.
The delinquency rate on the package is just 3.29%, far below the industry average. (According to information on the offering posted on the FDIC's website, $18 billion of the receivables have late payments of under 1%.)
A winning bidder for the receivables will be chosen in August. Some of the nation's top 10 servicers are expected to bid.
An adviser close to the deal said that "buyer interest remains strong" on the receivables. The bid date has been delayed several times.
The FDIC recently completed the sale of $1.2 billion of mostly nonperforming whole loans owned by AmTrust. Sources say the package was awarded to two private investors.
AmTrust failed in late 2009.
