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Mahin Joy Adeeb's Blog

By Mahin Joy Adeeb | Agent in San Jose, CA

Real Estate Market News!

Dear Clients,

The Federal Deposit Insurance Corp. is considering giving banks the chance to share in future profits on loans sold into a U.S. government-financed program to remove distressed assets.  The FDIC may allow the sellers of a loan to get an equity interest in the vehicle that buys it, meaning they would gain from any future increase in the asset’s value.
The aim is to give healthier banks an incentive to sell loans at a cheaper price, encouraging more investors to make bids.   “One option is for the seller to retain an equity interest as a part of the consideration for the sale,” Jim Wigand, the FDIC’s deputy director for resolutions and receiverships, said in an interview.  The agency’s plan is part of an effort by U.S. policy makers to remove as much as $1 trillion of illiquid mortgage loans and securities from banks’ balance sheets, giving them the capacity to offer new credit to consumers and businesses. Bank of America Corp. and other lenders have said they will wait to see the prices offered before deciding to participate.


By David & Samuel Rifkin,  Tue Apr 16 2013, 08:27
Thank you for this great information.

Samuel Rifkin
The Rifkin Team

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