FDIC plans $1.12B in property loan sales

The Federal Deposit Insurance Corp. is planning to sell $1.12 billion worth of commercial and residential real estate loans from failed banks in a sealed-bid auction, Bloomberg News reported. The agency plans to conduct separate residential and commercial sales, it said in a preliminary announcement yesterday. The $773 million residential portfolio, which includes acquisition, development and construction loans with collateral in 41 states and concentrated in Florida, Michigan, Utah, Arizona and Indiana, will be divided into northern, southeastern and western pools for the sale, the FDIC said. The $351 million commercial portfolio, of which 88 percent of the is backed by properties in Florida, Utah, Nevada, Michigan and Arizona, will be split into two pools: northern and western, and southeastern. Bids are due Nov. 16, and winning bidders will share ownership and proceeds of the debt with the FDIC. [Bloomberg]