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).. :/