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Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

Loan Sales FAQs

  1. What is a loan sale?

    A loan sale is a commonly used term for the sale of loans or loan pools. Loans acquired by the FDIC from failed financial institutions may be sold in pools through sealed bid sales.

  2. How are loan sales structured?

    Typically, sales contain loans that have similar characteristics. The loans are refined into pools according to specific criteria. Pooling considerations may include loan size, performance status, type, collateral and location.

  3. Are loans an appropriate investment for me?

    Every interested party, based on their own circumstances, must determine whether loans are a suitable investment. Prospective purchasers must have the financial sophistication and resources sufficient to evaluate and bear the economic risks of such loan purchases.

  4. Are there any restrictions to purchasing loans from the FDIC?

    Yes. The Purchaser Eligibility Certification identifies prospective purchasers who are not eligible to purchase assets from the FDIC under the laws, regulations and policies governing such sales. The FDIC must receive an executed Purchaser Eligibility Certification from prospective purchasers as a prerequisite to bid. The Purchaser Eligibility Certification is available on the website of the loan sale advisor responsible for the sale. Prospective purchasers will supply the completed form to the loan sale advisor.

    In order to self-screen, potential purchasers can review a sample copy of the Purchaser Eligibility Certification at the following link:

    Purchaser Eligibility Certification - Word (

  5. Does the FDIC only sell distressed or troubled loans?

    No. The loan portfolios of failed financial institutions usually contain a variety of performing and non-performing loan products including mortgage, commercial, consumer loans, etc.

  6. Does the FDIC guarantee the performance of loans being offered for sale?

    No. The FDIC makes no representations or warranties in connection with any of the loans. The only remedies or recourse provided to the buyer are those set forth in the Loan Sale Agreement. Generally, all risk associated with the loans are passed to the buyer.

  7. What’s the first step to participate in FDIC loan sales?

    The FDIC conducts loan sales with the support of the following loan sale advisors.

    First Financial Network (FFN)

    Mission Capital Advisors

    The Debt Exchange (DebtX)

    When the FDIC has loans available for sale they may be marketed on one of the three loan sale advisors’ websites. If interested in participating 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 to its website.

  8. How do I receive notification of FDIC loan sales?

    Persons with accounts on the respective advisors’ systems will receive emails notifying them of the FDIC loan sale offering when they are made available to the market. General announcements of an FDIC loan sale will appear on the website of the loan sale advisor responsible for the sale. The FDIC also announces the sale at FDIC: Loan Sales Announcements (

  9. May prospective purchasers review the loan files?

    The FDIC encourages prospective purchasers to complete file reviews and to perform their own investigation of the loans to the extent allowable under the Confidentiality Agreement. To conduct a review of the loan files, interested parties must contact the loan sale advisor responsible for the sale.

  10. Is there anything required to review files or obtain specific information on the loans in a given sale?

    Yes. Prospective purchasers must agree to the Confidentiality Agreement that is provided on the loan sale advisor’s website. To review the form of the Confidentiality Agreement, it can be obtained at the following link: Confidentiality Agreement - PDF (

    Further, to protect borrower’s privacy, a $50,000 refundable security deposit and completed registration are required of prospective purchasers prior to access being given to loan files or data containing borrower identity-related information. The loan sale advisors may charge a fee for vetting prospective purchasers’ qualifications.

  11. Is a deposit required in order to bid?

    Yes. An Initial Deposit must be received on one of the two business days prior to the bid deadline. Only one Initial Deposit is required from each bidder regardless of the number of bids submitted. Bidders must make the Initial Deposit by wire transfer. Initial Deposit is defined in the Bid Instructions for a given sale.

  12. What is required to bid on a sale?

    The Bid Instructions for a specific loan sale will define all requirements to bid on a given pool of loans. This includes submitting an Initial Deposit and executing certain documents, such as the Bid Certification and the Purchaser Eligibility Certification. These documents can be found on the loan sale advisor’s website. Once all requirements are met, the bidder will be given online access to bid.

  13. Where can I find the terms and conditions of the sale?

    The Loan Sale Agreement provides the terms and conditions of the sale. The Loan Sale Agreement will be available on the website of the loan sale advisor responsible for the sale. To review the form of the Loan Sale Agreement, it can be obtained at the following link: Loan Sale Agreement - PDF (

    Please refer to the specific Loan Sale Agreement for each respective sale is it is subject to change.

  14. Once a sale is awarded, how long before it is closed?

    The period of time varies, but FDIC sales are usually consummated within 20 business days after a bid is awarded. Bid package documents (i.e., Invitation to Bid, Loan Sale Agreement) should be reviewed to determine if there are specified closing dates.

  15. Is an earnest money deposit required by the winning bidder?

    Yes. The Earnest Money Deposit is comprised of the Initial Deposit and a Final Deposit. The Final Deposit equals 10% of the sum of all bid amounts for loan pools and loan pool combinations awarded the winning bidder less the amount of the bidders Initial Deposit. The Final Deposit must be submitted via wire transfer within one business day following bid award.

  16. What will the successful bidder obtain at closing?

    The successful bidder will receive the executed Bill of Sale, Closing Statement, Assignment and Assumption of Interests and Obligations, and Loan Sale Agreement at closing. All pertinent, available documentation for the loans such as the notes, collateral documents and loan files will be delivered to buyer within a reasonable time after closing.

  17. How are sales consummated?

    Closing shall occur on the closing date either by mail or conducted in person at a place designated by seller, at seller’s option. Upon receipt of the balance of the purchase price, the executed closing documents will be sent to the buyer.

  18. Where do I find historical loan sale results?

    Loan sale results are updated monthly and can be found on FDIC’s website at FDIC Closed Loan Sales. (

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