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An unsteady housing market has many banks still sitting on the sidelines, creating opportunity for a nonbank that specializes in buying problem assets.
August 20
A Newport Beach, Calif., firm that buys problem loans from banks has struck its second deal in less than a week.
Sabal Financial Group, which last week
Pat Jackson, Sabal's chief executive, said in a news release that his company was attracted to the Bank of the West portfolio primarily because of its land holdings. The supply of buildable land is limited so Jackson believes the properties' value will only increase as the real estate market recovers.
"We have the luxury of being patient in working out these assets," Jackson said.
With the purchase, Sabal now has amassed nearly $4 billion of assets since it was formed in 2009. The company also recently formed a unit that makes direct loans to home builders in California and the Pacific Northwest.
Bank of the West, with $62 billion of assets, is a unit of French banking giant BNP Paribas.