The Federal Deposit Insurance Corp. (FDIC) has closed on a sale of an equity interest in a limited liability company (LLC) created to hold certain assets transferred from 19 failed-bank receiverships. The purchaser of the interest is Charlotte, N.C.-headquartered Roundpoint Mortgage Servicing Corp.
The sale was conducted through a competitive auction held Feb. 24. Nine different qualified groups submitted bids to purchase either a 50% leveraged ownership interest or a 20% unleveraged ownership interest in the newly formed LLC. The winning bid was submitted on the leveraged ownership interest. The FDIC will hold the remaining 50% equity interest in its receivership capacity.
As an equity participant, the FDIC will share in the returns on the assets owned by the LLC. The percentage of the LLC interests owned by Roundpoint and the FDIC may be adjusted based on the performance of the mortgage loans.
As receiver for the failed banks, the FDIC conveyed to the LLC a portfolio of 3,373 single-family residential mortgage loans, of which approximately 51% were 30 or more days delinquent. Collectively, the loans have an unpaid principal balance of approximately $490.7 million. Approximately 80% of the collateral of the portfolio is located in Florida, Georgia and Arizona.
Roundpoint paid approximately $34.4 million in cash for its 50% equity stake in the LLC, which equates to an approximate value of 42% of the unpaid principal balance of the portfolio. As the LLC's managing equity owner, Roundpoint will provide for the management and servicing of the LLC's assets.