ValueXpress Closes on the Purchase of a Portfolio of Nine Owner-Occupied Loans

ValueXpress provided due diligence services related to the negotiation and purchase of nine performing owner-occupied loans at a discount to face amount on behalf of Country Bank, a N.Y. commercial bank with $500 million in assets. The loans, with a principal balance in excess of $6 million, are located in the New York metropolitan area and are secured by general-purpose real estate buildings in which the owner of the real estate operates a business on the property. The net income from the business provides at least 1.25x debt-service coverage. The seller was a Florida institution that inherited the loans from a failed financial institution. “We are going to work with the borrowers to refinance the loans to allow Country Bank to make a capital gain on the purchase discount, which will immediately flow to the bank’s profit and capital,” said Michael D. Sneden, Executive Vice President at ValueXpress, who worked on the transaction with Associate Jim Brett. “We are aggressively seeking more discounted performing loan opportunities on behalf of our banking clients to help them take advantage of the profit potential provided from the demise of failed financial institutions.”

This entry was posted in Commercial Lending, Michael D. Sneden, Owner-Occupied Loans, The Banker's Mortgage Conduit, Valuexpress and tagged , , , . Bookmark the permalink.

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