Thursday, January 31, 2008

Another "Significant Discount"

by Tanta on 1/31/2008 08:34:00 AM

HOUSTON, Jan 31, 2008 (BUSINESS WIRE) -- Oxford Funding Corporation has won the bid and secured financing for the purchase of a portfolio of mortgage loans offered by a national lender which is finalizing its bankruptcy proceedings. The pool of loans carries principal balances of $2.6 million, and consists of a mix of performing, sub-performing and non-performing loans; Oxford is purchasing these assets at a significant discount.

"We have evaluated the real estate securing these loans, and based on current valuations our cost of the portfolio will equate to approximately 30% of the collateral value," said Robert Dunn, President of Oxford. "We think this is another excellent opportunity for a safe and significant return on our investment."

Earlier this week, Oxford announced that its portfolio reflected an annualized return on investment exceeding 90% during 2007.
90% ROI? Jeepers.

If the price was 30 cents on the collateral dollar, I'd like to know what it was on the loan balances.