Blackstone Bets on Failed Loans as FHA Bailout Looms: Mortgages
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Hedge funds and private-equity firms are betting on delinquent home loans being sold by the U.S. Federal Housing Administration as the government agency accelerates debt sales to avert a bailout and stem foreclosures.
Investors including Lewis Ranieri’s Selene Investment Partners and One William Street Capital Management LP paid an average of 36 cents on the dollar in an FHA auction of 9,500 nonperforming loans, the Washington-based agency said this month. Bayview Financial LP, a firm backed by Blackstone Group LP, paid as little as 26 cents.