Here’s an obscure media source, The Business Journal of Milwaukee, on WFC’s decision to dump some bad paper:
Wells Fargo sold $600 million in mostly non-performing subprime loans to Irvine, Calif.-based Arch Bay Capital, National Mortgage News reported, citing sources familiar with the sale.
The industry publication said the loans sold for 35 cents on the dollar, about double what most hedge funds were offering.
Most of the subprime loans San Francisco-based Wells Fargo (NYSE: WFC) sold were originated by once-high flying Accredited Home Loans and NovaStar Financial, both of which originated subprime loans in the Milwaukee area.
No one involved in the recent sale is talking on the record, which may be a key reason lenders will look to private transactions to unload bad assets rather than turn to a government-sponsored program, National Mortgage News said.
Hat tip Andrew
Wells quietly sells $600 million in troubled subprime loans
Business Journal of Milwaukee, July 14, 2009, 4:21pm CDT
A Little Sunshine Would Be Nice in the Secretive Market for NPLs
Wells Fargo sells subprime duds to Irvine investor
Wells sells $600 million in distressed assets at 35 cents on dollar