Wells Fargo is poised to offload about $1.3 billion of non-performing real estate loans as part of its ongoing process to clean up its balance sheet, according to reports.
The US bank is looking to sell the loans in two tranches, Bloomberg reported this week. The first comprises a pool of about $630 million in unpaid principal balances, and another of about $700 million, the report said.
Private debt funds have been eager buyers of such NPL portfolios in recent months, particularly in Europe. In the US, lenders including Freddie Mac and the Department of Housing and Urban Development have also been selling mortgage debt to temper losses at the Federal Housing Administration.
Wells Fargo could not be reached for comment at the time of going to press.