Three of the nation's largest mortgage lenders have put sizeable packages of nonperforming and reperforming mortgage loans on the market for investors to buy, according to a release from New York-based loan broker Mission Capital Advisors. The loans being put on the market are worth a combined $4.5 billion. Bank of America has put up approximately $2.56 billion worth of delinquent debt for sale, including nonperforming loans, reperforming mortgages, and home equity lines of credit.
Citigroup has put up $1.8 billion worth of reperforming mortgages for sale, and JPMorgan Chase is looking for a buyer for $143 million worth of nonperforming mortgage loans. According to Mission Capital, there has been an increased demand for delinquent mortgage loans, troubled debt, and nonperforming mortgages among hedge fund investors and private equity firms. Last month, government-sponsored enterprise Freddie Mac announced that it intended to sell $410 million worth of delinquent mortgage loans.
Fast-rising rents have made it difficult for many Americans to save up a down payment for a home purchase—and experts say that problem is unlikely to go away any time soon. Late last year, real estate firm Zillow reported that renters living in the United States paid a cumulative $441 billion in rents throughout 2014. Results from a more recent survey conducted by Zillow and Pulsenomics suggest that rent prices will continue to be a problem for the aspiring homeowner for years to come.