Springleaf Holdings and the Re-Emergence of Sub-Prime Consumer Lending
Of this $2.82bil in unpaid stability (UPB), $2.6bil is present as of 30 June, while at the very least $450mil regarding the $677mil loans that are credit-impaired present. That is critical since these loans had been bought at
63 cents from the buck ($755mil reasonable value on UPB of $1.2bil)
The company’s legacy real-estate profile The biggest part of Springleaf’s asset base is its property loans, that have been being held at $8.46bil at the time of 30 June versus an unpaid balance of $9.93bil. This distinction of approximately $1.5bil represents a “push down” accounting therapy.
Whenever Fortress bought Springleaf from AIG this year, it used accounting that is purchase which means that current loan loss reserves had been destroyed and the net finance receivables had been marked at “current market value, ” thus reduced by nearly $2.5bil.Read more