FDIC Sells Pool of AmTrust Nonperformers for 37 Cents on the Dollar

A three-party consortium of opportunists has purchased a stake in an $898 million pool of nonperforming residential loans that the FDIC seized from AmTrust Bank when it went under last December. The procurers – which include mortgage servicer Residential Credit Solutions, hedge fund CarVal Investors, and the Royal Bank of Scotland’s RBS Financial Products subsidiary – picked up the AmTrust portfolio with a winning bid amounting to 37 cents on the dollar. Ninety-six percent of the residential real estate loans in the portfolio are delinquent, according to the FDIC. More than a third of the collateral in the portfolio is located in Florida, 11 percent in California, and the rest scattered across 45 other states.

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