Secondary Sales Uptick
A New York-based investment banker said he’s noticed an uptick in his bank and credit union clients selling mortgages to the secondary market, especially when the loans aren’t performing.
“Right now, the mark-to-market value on a nonperforming loan may be as good as it will ever be,” said Pete Duffy, managing director at Sandler O’Neill. “Unless the owner goes current again, the credit isn’t getting better. And if rates go up, market value is definitely going down.