Pedestal, the Internet-based secondary mortgage marketplace, has been selected by the Federal Deposit Insurance Corp. to conduct the agency's first online sale of financial assets.
The live online auction will take place on the Pedestal site on October 25. Approximately $12.3 million of home equity, home improvement and subprime loans will be auctioned. The loans are located throughout the Central and Eastern United States and will be sold servicing released. Due diligence commences October 2. The auction is part of an FDIC pilot test.
"The FDIC has recognised that online sales provide a highly efficient mechanism for asset disposition," says Terry Rowland, managing director of marketing and sales at Pedestal.
Since January 1999, Pedestal has posted in excess of $6.7 billion of mortgage loans for sale. Currently, approximately 1800 buyers and sellers, representing more than 1000 institutions, are registered to trade on pedestal.com