Idiots to even think about this purchase!
Bank of America Corp. and Citigroup Inc. (C) are selling multiple pools of soured U.S. mortgages to meet demand from investment firms that are pushing prices higher, according to three people with knowledge of the matter.
Bank of America put about $1 billion of troubled debt on the market last week, consisting of nonperforming loans and some where payments have resumed, said the people, who asked not to be identified because the offerings are private. The Charlotte, North Carolina-based lender also is marketing about $1 billion of soured home loans with Wells Fargo & Co., according to one of the people. Citigroup is separately selling about $1 billion of nonperforming and re-performing mortgages, the people said.
Dan Frahm, a spokesman for Bank of America, and Mark Costiglio, a spokesman for Citigroup in New York, declined to comment on the loan sales. Elise Wilkinson, a spokeswoman for San Francisco-based Wells Fargo, also declined to comment.