Credit Suisse Scoops Loans From AIG Lending Unit

Posted by Orb Staff on July 15, 2009 No Comments
Categories : Residential Mortgage

an General Finance Corp. (AGFC), the consumer lending arm of bailed-out insurance giant AIG, has sold mortgage-backed certificates to Credit Suisse in a deal expected to total between $925 million and $975 million, according to a Securities and Exchange Commission [link=http://www.sec.gov/Archives/edgar/data/25598/000002559809000032/agfc8k070809.htm][u]filing[/u][/link] dated July 8. The principal balance of the certificates is approximately $1.6 billion, according to the filing, which was originally reported by [link=http://www.bloomberg.com/apps/news?pid=20601208&sid=a1qF5trfzk4M][u]Bloomberg[/u][/link]. The loans will be serviced by PennyMac Loan Services LLC, a wholly owned subsidiary of the Private National Mortgage Acceptance Co. LLC headed by former Countrywide President Stanford Kurland. The transaction is expected to close on or around July 30, subject to customary closing conditions. AGFC will use the cash proceeds to support its liquidity position and funding needs, including the discharge of approximately $313 million of debt security obligations under an indenture dated Jan. 1, 1988, and due this year. SOUR

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