Latest NPN Market Trends

[Andy Mirza]

We've been in buying mode for the last couple of months after closing our last fund to new investors.

Our experience so far:

Lots of IL, NJ, NY, PA, OH, FL loans for sale - those are in judicial FC states many of which had longer than average foreclosure moratoria or still have them in place. Some of our sellers seem ready to unload these loans that have they've held for a long time just to get them off their books and to reduce their exposure.

On the plus side for us as buyers, a lot of these loans are post judgment and just waiting for FC sales to resume. Also, real estate prices in general are going up, which bodes well for our chances to sell to a 3rd party at sale or to sell our REOs. Some of our sellers are taking note of this and want a lot more for their NPNs that have sale dates a month or two out. They'd rather take their chances at the FC sale because they're getting a lot more than they expect.

Not very many NPNs available in non-judicial FC states. My take is that these have had time to make their way through the system to go to sale while not being replenishing the supply with other NPNs because of forbearance, either GSE or non-GSE.

One seller said that they're expecting to buy 1000 more loans in the next few months. I wonder if it'll actually happen and what it means if it does.

Other viewpoints out there?