Frequently Asked Questions for Asset Sales
Q. Where can I find a house or property to buy?
A. The FDIC Real Estate for Sale page is a searchable database of all FDIC-owned real estate for sale. Each property will have a contact name and phone number. The contact name will either be an individual from an FDIC office or an individual associated with the sales initiative (e.g. Auction Company, Real Estate Broker). If a property information package ("PIP") has been prepared on a particular property, it can be obtained from this individual. Additional questions and answers can be found on Real Estate Sales FAQs.
Q. How can I buy furniture or equipment from the FDIC?
A. The FDIC sells various items such as furniture or office equipment in two ways – as the leftover assets from a bank failure or through liquidation of old FDIC-owned property. For information about failed bank items, please visit Other Assets from Failed Banks.
Q. How can I buy loans from the FDIC?
A. The FDIC conducts loan sales with the support of four loan sale advisors. When the FDIC has loans available for sale they may be marketed on one of the loan sale advisors’ websites.
To participate in a loan sale offering, please contact each of the loan sale advisors and request an account be established on the respective website. Each loan sale advisor has its own requirements for granting access. You are encouraged to register so you will receive notice of any FDIC loan sale offering.
First Financial Network (FFN)
www.ffncorp.com
405-748-4100Mission Capital Advisors
www.missioncap.com
212-925-6692Newmark
www.nmrk.com
212-372-2000The Debt Exchange (DebtX)
www.debtx.com
617-531-3400Additional information on the loan sale process can be found at FDIC: Loan Sales.
Q. Do you have historical information on FDIC property sales?
A. Closed Real Estate Sales is a searchable database with real estate sales results from 1995 to the present. Closed Loan Sales provides data on pools of loans sold from 1994 to the present.
Q. What types of MSRs does the FDIC sell?
A. The most common MSRs relate to SFR loans originated or purchased by the failed institution and sold, servicing retained, to the Government Sponsored Enterprises (GSEs) such as Fannie Mae and Freddie Mac or included in a mortgage-backed securitization guaranteed by Ginnie Mae, and to a lesser extent SFR loans held by private investors or backing private-label securitizations.
Q. How can I receive notification of MSR sales?
A. Parties interested in participating in MSR sales may request that they be included on a list of “prospective bidders” to receive sale announcements. Prospective bidders may provide contact and investor status information and identify the types of financial assets, including MSRs, they are interested in purchasing by completing the Prospective Bidder Information form, and delivering the completed form electronically to: prospectivepurchaser@fdic.gov. Prospective bidders’ that submit the form will be included on a list to receive sale announcements that match their expressed interests.
Q. Who can buy MSRs?
A. Prospective bidders must demonstrate the ability to service loans in accordance with mortgage industry standards. Generally, only mortgage originators and servicers, financial institutions, and institutional investors with experience and access to sophisticated mortgage servicing platforms are eligible to purchase MSRs. In addition, many investors – including the GSEs and Ginnie Mae – will require the purchaser to meet investor approval requirements.
Eligible bidders must be qualified prior to receiving information regarding MSRs offered for sale.
Q. How can I become a qualified bidder?
A. Prospective bidders will be required to meet transaction-specific qualification criteria. As a general matter, the transaction-specific qualification process will require prospective bidders to complete, to the satisfaction of the FDIC, and return the following executed documents:
- Confidentiality Agreement
- Qualification Request
- Purchaser Eligibility Certification (PEC)
The FDIC also runs a search with the Office of Foreign Assets Control (OFAC) of the U.S. Department of Treasury on potential qualified bidders prior to bid sheet distribution.
Note: In addition to bidder qualification documentation required by the FDIC, investor-specific requirement and approvals may also apply.
Q. How are MSR sales advertised?
A. MSR sales are generally advertised through direct and digital solicitation of current and previously qualified bidders through contacts maintained by the FDIC and, if contracted to assist with the sale, investor lists maintained by a financial advisor.
Depending on the type of portfolio and the timing, a sale may also be advertised through media outlets and on FDIC.gov.
Q. What is the auction sale process?
A. Potential bidders are solicited directly or through public announcement.
- Interested bidders are qualified (e.g. Confidentiality Agreement, Qualification Request, PEC, OFAC certification).
- Upon receipt of an earnest money deposit, qualified bidders are provided access to due diligence material approximately 30 days in advance of the auction bid date.
- During the due diligence process, bidders are reviewed by the investor including the GSEs and Ginnie Mae, if investor approval is required.
- Bids are reviewed and the winning bidder is typically confirmed via phone and email.
- Transaction closing documents are typically executed within 2 weeks of bid date, and servicing transferred within 30 days.
Q. Is a deposit required to bid?
A. Yes, an earnest money deposit is typically required from each qualified bidder to access due diligence materials and bid.
Q. Where can I find a listing of historical sales?
A. Historical sales can be found on FDIC.gov through the following link: Mortgage Servicing Assets