Hi all, have mercy on the new guy here! I promise I'm not looking to be spoonfed information. I love doing my own research and I'm loving my real estate education journey so far. I'm currently in the middle of one of Dave Van Horn's books on note investing but I've not yet gotten all the way through so the process in its entirety isn't very clear to me just yet. I'm getting there though, with help from people like you, so thank you. My question about this topic is regarding the last part of the article where they said that the loans were batched into two pools with each going to a different bank, with bids due by June something-or-other. Does this mean that those notes are being sold by the banks as a pool to the highest (I'd imagine billionaire) bidder who then plays middle-man and sells them off as he/she sees fit? Or will the banks sell them off in batches or one-offs? Is the "little guy" even able to play directly with notes anymore or is it more often done through investment companies? I appreciate any clarification, thanks.
And for the record, @Martin Saenz, your book is next!
What am I doing wrong with tagging people, BTW? Neither my phone nor my computer let me do it.
I'm happy about this part: "Incumbent in the sale of Fannie Mae’s non-performing loans are requirements that buyers of these loans pursue loss mitigation that is sustainable for the borrower."
Wonder if it limits the secondary buyer's ability to resell the loans though.
Hi all, have mercy on the new guy here! I promise I'm not looking to be spoonfed information. I love doing my own research and I'm loving my real estate education journey so far. I'm currently in the middle of one of Dave Van Horn's books on note investing but I've not yet gotten all the way through so the process in its entirety isn't very clear to me just yet. I'm getting there though, with help from people like you, so thank you. My question about this topic is regarding the last part of the article where they said that the loans were batched into two pools with each going to a different bank, with bids due by June something-or-other. Does this mean that those notes are being sold by the banks as a pool to the highest (I'd imagine billionaire) bidder who then plays middle-man and sells them off as he/she sees fit? Or will the banks sell them off in batches or one-offs? Is the "little guy" even able to play directly with notes anymore or is it more often done through investment companies? I appreciate any clarification, thanks.
And for the record, @Martin Saenz, your book is next!
What am I doing wrong with tagging people, BTW? Neither my phone nor my computer let me do it.
@Martin Saenz I am guessing that each pool will stay with a single large buyer/servicer. Fannie will say that will make the enforcement of the "loss mitigation" clause practical.
If they were going to DebtX, I think it would be more likely the pools would be broken up eventually.
Ok I’m just getting to the part of Dave Van Horn’s book where he explains institutional notes in depth. If my understanding is correct the banks will further break them down into smaller pools and continue to sell them off to other smaller banks and brokerages where they would be available (as pools or one-offs) to individual or small team investors. Am I close?
@Martin Saenz I am guessing that each pool will stay with a single large buyer/servicer. Fannie will say that will make the enforcement of the "loss mitigation" clause practical.
If they were going to DebtX, I think it would be more likely the pools would be broken up eventually.
Sounds about right. If it hits DebtX, buyers should pool money to make a run at the action versus waiting for the downstream. Notes stay at the top but usually find their way down eventually