Of this $2.82bil in unpaid stability (UPB), $2.6bil is present as of 30 June, while at the least $450mil for the $677mil loans that are credit-impaired present. This will be critical since these loans had been bought at
63 cents in the dollar ($755mil value that is fair UPB of $1.2bil)
The company’s legacy real-estate profile The portion that is largest of Springleaf’s asset base is its property loans, that have been being held at $8.46bil at the time of 30 June versus an unpaid stability of $9.93bil. This huge difference of approximately $1.5bil represents a “push down” accounting therapy.
When Fortress bought Springleaf from AIG this year, it used accounting that is purchase and thus current loan loss reserves had been destroyed and the net finance receivables had been marked at “current market value, ” hence reduced by almost $2.5bil. Today, the worthiness for the staying property loans held on stability sheet is roughly $1.5bil underneath the balance that is unpaid.
Real-estate financing and securitization had been a component that is major of business while section of AIG. 继续阅读“Springleaf Holdings and the Re-Emergence of Sub-Prime Consumer Lending”