A loan sale is one of the disposition strategies that the FDIC uses to sell loans retained from one or more failed banks. Common loan types in these sales include loans secured by commercial or residential real estate, commercial and industrial loans, and consumer loans. Typically, loans with similar characteristics or that meet specific criteria are grouped together in pools. A loan sale event usually includes multiple loan pools that the FDIC markets on a competitive, sealed-bid basis. From start to finish, a loan sale takes approximately 120 days to complete.
When large portfolios of loans are retained, the FDIC may use other disposition strategies, such as joint venture transactions and securitizations.
Loan Sales Event(s)
| Description | Date(s) | Location |
|---|---|---|
There are no loan sales event announcements at this time. | ||
Loan Sale Advisors
The FDIC conducts loan sales with the assistance of loan sale advisors. When the FDIC has loans available for sale, it markets them on one of the four loan sale advisors’ websites. To participate in a loan sale, please contact each of the loan sale advisors and register on their respective website to receive sale announcements.
Prospective bidders may provide contact and investor status information and identify the types of financial assets, loans, and loan-related assets they are interested in purchasing by completing the Prospective Bidder Information form and delivering the completed form electronically to: prospectivepurchaser@fdic.gov. Prospective bidders that submit the form will have their names included on a list to receive sale announcements that match their expressed interests.
The FDIC welcomes and strongly encourages minority- and women-owned businesses to participate in the FDIC's loan sales.
Forms
The FDIC uses various forms throughout a loan sale, some of which include the Purchaser Eligibility Certification, the Confidentiality Agreement, and the Loan Sale Agreement.
To request a hard copy of the following forms, please visit the Public Information Center for more information. Information about how to download and use these files is at PDF Help & Word Help.
Purchaser Eligibility Certification
A certification executed by a prospective purchaser asserting their eligibility to purchase assets of failed financial institutions from the FDIC.
Confidentiality Agreement
An agreement executed by a prospective bidder as a prerequisite to accessing evaluation materials as part of an FDIC loan sale.
Loan Sale Agreement
An agreement between the buyer and seller that provides the terms and conditions of the loan sale.
Closed Loan Sales
Find closed loan sales information ranging from January 1, 2010 to present.
Frequently Asked Questions
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| Questions and Answers |
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| Are loans an appropriate investment for me? Every interested party, based on their own circumstances, must determine whether loans are a suitable investment. Prospective purchasers must have the financial sophistication and resources sufficient to evaluate and bear the economic risks of such loan purchases. |
| How do I receive notification of FDIC loan sales? Persons with accounts on the respective advisors’ websites will receive emails notifying them of the FDIC loan sale when they are made available to the market. In addition, a general announcement of an FDIC loan sale will appear on the website of the loan sale advisor responsible for the sale. The FDIC also announces sales on its website under Loan Sale Event(s). |
| What types of loans are in loan sales? The most common loan types in these sales include loans secured by commercial or residential real estate, commercial and industrial loans, and consumer loans. They can also include specialty assets like agricultural loans, credit cards, leases, government-backed loans, or lead participations. |
| Does the FDIC sell only distressed or troubled loans? No. The loan portfolios of failed banks usually contain a variety of performing and non-performing loan products including mortgage, commercial, and consumer loans. The FDIC sells loans that are available for sale regardless of performance status or quality. |
| What criteria does the FDIC consider when creating loan pools? Typically, pools contain loans that have similar characteristics or meet specific criteria. Pooling considerations may include performance status, loan type, loan size, collateral, and location. A loan pool may contain one or more loans. For example, a loan that is a lead participation may be placed in its own pool to provide the downstream participant(s) an opportunity to purchase its related interest. |
| Are there any restrictions to purchasing loans from the FDIC? Yes. A prospective purchaser must be able to execute a Purchaser Eligibility Certification asserting their eligibility to purchase assets of failed financial institutions from the FDIC. The Purchaser Eligibility Certification identifies prospective purchasers who are not eligible to purchase assets from the FDIC under the laws, regulations, and policies governing such sales. The FDIC must receive an executed Purchaser Eligibility Certification from prospective purchasers as a prerequisite to bid. The Purchaser Eligibility Certification is available on the website of the loan sale advisor responsible for the sale. Prospective purchasers will supply the completed form to the loan sale advisor. In order to self-screen, prospective purchasers can review a sample copy of the Purchaser Eligibility Certification at the following link: Purchaser Eligibility Certification |
| Does the FDIC guarantee the performance of loans it sells? No. The FDIC makes no representations or warranties in connection with any of the loans. The only remedies or recourse provided to the purchaser are those set forth in the Loan Sale Agreement. Generally, all risks associated with the loans are passed to the purchaser. Prospective purchasers can review the terms and conditions of sale in a sample copy of the Loan Sale Agreement at the following link: Loan Sale Agreement. Please refer to the specific Loan Sale Agreement for each respective sale as it is subject to change. |
| May prospective purchasers review the loan files? The FDIC encourages prospective purchasers to complete file reviews and to perform their own investigation of the loans to the extent allowable under the Confidentiality Agreement. To conduct an online review of the loan files, interested parties must contact the loan sale advisor responsible for the sale and register on its website. |
What is required to review files or obtain specific information on the loans in a given sale?
The loan sale advisor may charge a fee for vetting a prospective purchaser’s qualifications. |
| Is a deposit required in order to bid? Yes. An Initial Deposit, as defined in the Bid Instructions for a given sale, must be received on one of the two business days prior to the bid deadline. Only one Initial Deposit, typically in the amount of $100,000, is required from each bidder regardless of the number of bids submitted. Bidders must make the Initial Deposit by wire transfer. The Initial Deposit will be returned to the unsuccessful bidder within a reasonable time after selection of the winning bidder. |
| What is required to bid on a sale? The Bid Instructions for a specific loan sale will define all requirements to bid on a given pool of loans. This includes submitting an Initial Deposit and executing certain documents, such as the Bid Certification and the Purchaser Eligibility Certification. These documents can be found on the loan sale advisor's website. Once all requirements are met, the bidder will be given online access to bid. |
| Where can I find the terms and conditions of the sale? The Loan Sale Agreement provides the terms and conditions of the sale. The Loan Sale Agreement will be available on the website of the loan sale advisor responsible for the sale. Prospective purchasers can review the terms and conditions of sale in a sample copy of the Loan Sale Agreement at the following link: Loan Sale Agreement Please refer to the specific Loan Sale Agreement for each respective sale as it is subject to change. |
| Once a winning bidder is awarded a bid, how long before the sale is closed? The period of time varies, but FDIC sales are usually consummated within 20 business days after a bid is awarded. Bid Package documents (e.g., Invitation to Bid, Loan Sale Agreement) should be reviewed to determine the specified closing date. |
| Is an earnest money deposit required from the winning bidder? Yes. The Earnest Money Deposit is comprised of the Initial Deposit and a Final Deposit. The Final Deposit equals 10% of the sum of all bid amounts for loan pools and loan pool combinations awarded the winning bidder less the amount of the bidder’s Initial Deposit. The Final Deposit must be submitted via wire transfer within one business day following bid award. |
| What will the successful bidder receive at closing? The successful bidder will receive the executed Bill of Sale, Closing Statement, Assignment and Assumption of Interests and Obligations, and Loan Sale Agreement at closing. All pertinent and available documentation for the loans such as the notes, collateral documents, and loan files will be delivered to the purchaser within a reasonable time after closing. |
| How are sales consummated? Closing will occur on the closing date. At the FDIC’s option, closing may be done electronically or conducted in person at a place designated by the FDIC. |
| How often are historical loan sale results updated? Loan sale results are updated monthly and can be found on FDIC’s website at FDIC Closed Loan Sales. |