Loan sale
Encyclopedia
A loan sale is a sale
, often by a bank, under contract
of all or part of the cash stream
from a specific loan
, thereby removing the loan from the bank
's balance sheet
.
Often subprime loans from failed banks in the United States are sold by the Federal Deposit Insurance Corporation
(FDIC) in an online auction format through companies such as The Debt Exchange, Mission Capital Advisors
, Eastdil Secured, Garnet and First Financial, all of which are listed on the FDIC's website under Asset Sales and the Carlton Group (under Carlton Exchange). Performing loans are also sold between financial institutions. Mandel & Company is an example of a leading financial services firm that arranges performing loan sales.
Sales
A sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity....
, often by a bank, under contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
of all or part of the cash stream
Cash
In common language cash refers to money in the physical form of currency, such as banknotes and coins.In bookkeeping and finance, cash refers to current assets comprising currency or currency equivalents that can be accessed immediately or near-immediately...
from a specific loan
Loan
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower....
, thereby removing the loan from the bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
's balance sheet
Balance sheet
In financial accounting, a balance sheet or statement of financial position is a summary of the financial balances of a sole proprietorship, a business partnership or a company. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A...
.
Often subprime loans from failed banks in the United States are sold by the Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
(FDIC) in an online auction format through companies such as The Debt Exchange, Mission Capital Advisors
Mission Capital Advisors
Mission Capital Advisors is a loan sale advisory firm, with offices in New York City; Austin, Texas; Palm Beach Gardens, Florida; and Newport Beach, California...
, Eastdil Secured, Garnet and First Financial, all of which are listed on the FDIC's website under Asset Sales and the Carlton Group (under Carlton Exchange). Performing loans are also sold between financial institutions. Mandel & Company is an example of a leading financial services firm that arranges performing loan sales.
External links
See also
- Loan Exchange
- Internet Data ExchangeInternet Data ExchangeAn Internet Data Exchange is a real estate property search site which allows the public to conduct searches of approved Multiple Listing Service properties in a certain area.Site users generally gain the benefit of anonymous property searching and review...
(IDX) - Commercial Information ExchangeCommercial Information ExchangeA Commercial Information Exchange is an Internet-based commercial property listing service that is operated by a local association to serve the local market. A CIE is the commercial real estate equivalent of the residential Multiple Listing Service...