According to an article in Bloomberg, sales of delinquent mortgages are accelerating as lenders rush to meet demand from hedge funds and private-equity firms that has sent prices surging.
The market for defaulted mortgages is heating up as Wall Street firms try to profit from the housing recovery, banks seek to avoid the added costs of holding delinquent debt and the Department of Housing and Urban Development sells loans to reduce losses at the financially troubled Federal Housing Administration.
“This market is getting very heady and you are seeing the supply come out in response to these prices,” Laurence Penn, CEO of Ellington Financial, said.
