Hmmm.. latest Fannie Mae sale

[Patrick Desjardins]

The latest Fannie Mae sale was for 3,400 loans. The prices seem crazy and still trending up.

Goldman Sachs 808 loans with a total UPB of $127,716,108. The weighted average broker's price opinion loan-to-value ratio is 86.84 percent

Balbec Capital Group LP 681 loans. UPB of $115,802,447 weighted average broker's price opinion loan-to-value ratio at 81.03 percent

Rushmore Loan Management Group, 1,929 loans $337,667,876 UPB. BPO loan-to-ratio value of 88.02 percent

So, help me out here. How are they making profits paying 88 cents on the dollar? It sounds like you would need to have a near perfect record of resolving the defaults to grind out a single digit return (even if UPB > BPO and they have that spread).. :/

[Chris Seveney]

Patrick Desjardins Bruce Lynn

Goldman is buying them up because of their fine and how they can reduce the cost of the fine by buying NPN's. They can manipulate the write offs to reduce the fine

http://www.zerohedge.com/news/2017-03-17/why-goldman-buying-spree-delinquent-mortgages