GMAC Financial has sold a pool of 321 single-family mortgages to private equity firm SilverLeaf Financial at a discount of 17.5 cents on the dollar, the firm revealed today.
The Salt Lake City private equity firm said in a statement it bought the loans, which had a face value of $28 million, for just $4.9 million. The 30-year mortgages include performing and non-performing loans originated by GMAC, which is owned by Cerberus Capital Management.
The firm added that it had also bought a $5 million note secured against a self storage unit in Fort Myers, Florida. The borrower is ASAP Storage.
Founded in April 2007, SilverLeaf is targeting real estate-related loans from the US government agency that takes over failed banks, the Federal Deposit Insurance Corporation.
In May, the firm said it was seeking to raise additional capital to invest in the sector, and was working with other private equity firms to take advantage of distressed debt opportunities.
Cerberus has struggled with its GMAC investment since leading an investment group that bought a 51 percent stake in GMAC, the former financing arm of General Motors, for $14 billion, $6 billion of which came from the firm's own funds.
The company restructured a portion of its debt load last year to qualify to convert to a bank holding company and gain access to the government's TARP funds.