Mortage Loan Acquisition ( Midwestern United States )

In June 2008, Summit acquired a $65 million pool of 330 residential real estate loans from a large Midwest regional bank. All of the loans were secured by single family homes or undeveloped lots located primarily in Southwest Florida. The majority of the loans were made to individual investors across the country who did not intend to occupy the homes. When the real estate market began rapidly deteriorating in early 2007, construction of many of the homes stopped and construction plans for undeveloped sites were abandoned altogether, which left the bank in a difficult workout position. Summit’s expertise in and appetite for evaluating and pricing loans on partially completed homes is a rarity for those in the bank debt purchases market, and a result, Summit was able to offer the bank a concise and timely acquisition plan and closing process.

In the first 120 days after acquiring the loans, Summit resolved approximately 15% of the loan portfolio, and has continued to monetize the remaining portfolio pursuant to its workout strategy.