Sale & Purchase of Loan Servicing Pools

Attorneys in the Commercial Real Estate and Finance Section represent lending institutions in the sale and acquisition of mortgage loan pools and loan servicing pools, including the sale of servicing portfolios of both residential and commercial mortgages, the purchase and sale of large pools of conventional mortgages, both performing and non-performing, as well as the sale and acquisition of substantial pools of commercial economic development loans.

Our attorneys draft and negotiate loan sale agreements; assist in the preparation of pre-sale due diligence for sellers of loan pools; conduct loan pool due diligence for purchasers; draft and negotiate servicing agreements; represent purchasers in the administration and collection of loans and the resolution of problem loans; and handle the post-closing "put" of loans not conforming to sale representations. Additionally, we coordinate the closing of acquisition financing of the pools, and secure the acquisition credit facilities.

We recently represented the purchaser of multiple pools of loans from the United States Small Business Administration having an aggregate unpaid principal balance of over $350 million. Also, we recently represented the seller in the sale of a $500 million residential mortgage purchase. In addition, we handle numerous acquisitions and sales of smaller pools. Our clients have included banks, savings banks, financial companies and credit companies, both local and national. Our experience and ability to be flexible in our staffing permits us to be efficient and fill the role the particular seller or purchaser requires, whether full service or simply document counsel.

We see this market growing over the next few years as the consolidation of lenders continues to occur and lenders change portfolio direction and desire to acquire new portfolios or exit from prior portfolio strategies. Additionally, there will be an increase in the pooling of non-performing loans as interest rates increase. We also see an increased desire by governmental and quasi-governmental economic development authorities to sell portfolios as a means of raising additional funds from which to fund development activities as the competition for available tax dollars increases. The firm is poised to address all of our clients' needs as this market continues to grow and become more sophisticated.