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 Capital Advisors 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. NoteSale.com is a loan sale advisory firm that works with insurance companies, banks, special servicers, pension funds, investment banks, and government agencies in the structured sale of individual assets and performing and non-performing loan portfolios.
Famous quotes containing the words loan and/or sale:
“Neither a borrower nor a lender be,
For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry.
This above all: to thine own self be true,
And it must follow, as the night the day,
Thou canst not then be false to any man.”
—William Shakespeare (1564–1616)
“I keep thinking that what I need
to do is buy my leg back.
Surely it is for sale somewhere,
poor broken tool, poor ornament.
It might be in a store somewhere beside a lady’s scarf.”
—Anne Sexton (1928–1974)