WASHINGTON — The Federal Deposit Insurance Corp. announced on Monday it would offer up approximately $60 billion in loans from Signature Bank for sale after
"The portfolio is comprised primarily of commercial real estate (CRE) loans, commercial loans and a smaller pool of single–family residential loans. The CRE loans include a concentration of multifamily properties, primarily located in New York City," the agency
The agency made it clear it was paying particular attention to the commercial real estate loans secured by rent-stabilized or rent-controlled multifamily residences as they are an important source of affordable housing in New York City.
"The FDIC has a
The agency says it plans to reach out to state and local government entities, as well as community-based organizations, to inform them of their efforts and to seek local input as the agency establishes a marketing and disposition strategy.
Following the New York-based bank's failure in March, the FDIC sold
The composition of the $60 billion portfolio explains in part why the agency and Flagstar left those assets out of its initial sale. Commercial real estate loans have been
This announcement comes after a hearing of the U.S. House Financial Services Committee in late March shed light on the FDIC's ongoing receivership activities. FDIC Chairman Martin Gruenberg indicated the agency would return the approximately $4 billion in deposits linked to Signature Bank's digital asset banking enterprise to customers by early April. Gruenberg also stated that
The FDIC says it plans to begin its sale process this summer and has tapped Newmark & Company Real Estate, Inc. to advise on the sale. The agency notes the loans will be sold as-is and without warranties, and will be sold exclusively to qualified buyers.
"Information concerning the loans will be furnished only to persons who demonstrate that they have a level of financial sophistication and resources sufficient to evaluate and bear the risks of an investment in the loans," the FDIC said in its statement.