Newly Available Debt Portfolios Include $600 Million Sale
October 26 2007
Source: CreditandCollectionsWorld.com and SourceMedia, Inc.
A $600 million portfolio of credit card charge-offs and auto and telecom loans tops the list of offerings newly available this week. Debt broker National Loan Exchange is handling the resale, which includes an estimated $450 million of “very aged” credit card loans from several different issuers.
“We’re already seeing a large increase in volume compared to the fourth quarter of last year, based on the commitments we have through the end of the year,” says Aaron Hadam, senior vice president with National Loan Exchange. “Charge-offs are up. All the major banks are coming out with news that they’re increasing their provisions for loan losses. We definitely expect the increase in volume to carry well into 2008.”
Other portfolio sales National Loan Exchange is handling this week include the sale of a $38 million package of mostly real estate deficiencies from GreenTree Servicing, and three Key Bank listings: a $15 million portfolio of auto, recreational vehicles and marine loans; a $3 million student loan sale; and a $10 million small business package. HSBC Bank is selling a $3.8 million portfolio of auto loans.
Garnet Capital this week continues to market an $800 million portfolio of private-label credit card charge-offs. The accounts are broken into several pools based on the last level of agency placement and a bid date is set for Nov. 16. Garnet also is handling the sale of a $100 million portfolio of private-label, non-revolving credit cards. The bid date is set for Nov. 1.
Elsewhere, Charge-Off Clearinghouse, a reseller, has three portfolios for sale including a $7.3 million portfolio of major bank credit cards with an average charge-off date of May 2003; a $12 million portfolio of judgments; and a portfolio with an unspecified balance of a variety of out-of-statute accounts.