InfoBytes, September 18, 2010 - Weekly In-depth review of news & developments in the financial services industry


Topics In This Issue

• Federal Issues

• State Issues

• Courts

• Firm News

• Mortgages

• Banking

• Consumer Finance

• Securities

• Litigation

• Privacy/Data Security

Excerpt from "Federal Issues"

FDIC Conducts Pilot Sale of Receivership Assets Under the Legacy Loan Program. On September 16, the Federal Deposit Insurance Corporation (FDIC) announced that it signed a bid confirmation letter with Residential Credit Solutions (RCS), which submitted the winning bid in the FDIC’s pilot sale of receivership assets under the Legacy Loans Program (LLP). The pilot sale, conducted on August 31, 2009, consisted of 12 bidders competing to purchase a limited liability company (LLC) holding a portfolio of residential mortgage loans with an unpaid principal balance of approximately $1.3 billion owned by the FDIC as Receiver of Franklin Bank, SSB, Houston, Texas. Bidders for the pilot sale had the option to leverage their bids with LLP funds at 6-to-1 or 4-to-1, or to submit a cash bid for a 20 percent ownership interest. Ultimately, the winning bidder, RCS, financed the sale using the 6-to-1 leverage option, paying a total of $64,215,000 in cash for a 50 percent equity stake in the LLC. The LLC will issue a note of $727,770,000 to the FDIC as Receiver, guaranteed by FDIC in its corporate capacity. Based on the FDIC’s analysis and assumptions, the present value of RCS’ bid equals 70.63 percent of the outstanding principal balance of the portfolio. Once the deal closes, RCS will manage the portfolio and service the loans consistent with the Home Affordable Modification Program (HAMP) guidelines.

Please see full newsletter below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BuckleySandler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »


BuckleySandler attorneys are among the leading financial services law practitioners in the country... View Profile »

Follow BuckleySandler LLP :

Reporters on Deadline

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.