NPL's and Banks

[Robert Carpenter]

The impression I get from real estate license study material is that Banks will only put together loans they can turn around and sell to Fannie Mae.  How is it then the banks ever come to have non performing loans on their books ? 

[Les Goss]

@Robert Carpenter, we're not big enough to buy from Freddie or Fannie, or even the hedge funds they sell to. Those will eventually trickle down to a fund that will sell singles or small pools.

Another way to find bank NPNs is to contact local and regional banks directly. Many of these are portfolio lenders that hold their own notes. When they get tired of holding nonaccrual notes they will sell them, maybe to you if you've built a relationship.

You can find the status of every bank in the country by looking at the call reports they have to submit to the FDIC every quarter. They're about 80 pages long and difficult to interpret. Brecht Polumbo has a course that will let you figure out if a bank is a likely target for a call. He also has some online software that will comb through all the data and just present you with a list of likely candidates. https://www.distressedpro.com/

Hope this helps,

Les