NPL&REO News

Banks and servicers return 5,000 assets to residential market

27 February, 2025

Banks and real estate companies that manage properties from auctions (REOCOs) are prioritizing properties in their portfolios that are eligible for the “My Home II” program in order to increase the supply on the market, as well as avoid the doubling of the Single Property Tax (ENFIA) that comes into force next year.

Based on estimates, this concerns 5,000 properties that meet the characteristics provided for by the program: Tthey have been built until 2007, their area is up to 150 sqm. and their commercial value does not exceed EUR 250,000. Of these, those that are mature for sale do not exceed 1,500-2,000 and the goal is to quickly mature the rest in order for them to return to the market.

Finding the right property is the main problem faced by those interested in applying for “My Home II”. As the latest data show, applications to banks have already reached 20,000 and to date the number of entrants in the program is approximately 500.

It should be noted that in order to be eligible for the program, one must have found the property for which they are applying for a loan about, and the low number in relation to the volume of applications at the banks confirms the significant deficit that exists in the housing market, especially in Attica.

The application requires that the properties the interested parties have found have an electronic identity for the loan process to proceed, provided that the prospective borrower meets the bank’s credit criteria.

According to data from banks, 10% of prospective borrowers declare that they have found the property, raising the number of those who can join immediately based on the applications to date to close to 2,000. The interest rate of the program is based on Euribor – currently close to 2.5% –, on which the margin charged by each bank is applied and which is formed on average at 1.5%. Given that 50% of the interest rate is subsidized, the final interest rate is close to 2%.

Banks and companies that manage properties that have come into their ownership after auctions due to debts from bad loans have every reason to promote the stock of these properties, in order to, on the one hand, limit the shortage of supply in the market and, on the other hand, to avoid paying double ENFIA from 2026. The doubling of ENFIA was imposed by the recent law on bank charges and concerns all properties that they will own at the end of 2025 and have not been rented.

Original Story: Ekathimerini | Author: Evgenia Tzortzi | DATE: 13/02/2025
Edition: Prime Yield

Non-performing loan sale bill approved by government

24 February, 2025

Diploma transposing EU directive sent to parliament. The delay prompted Brussels to lodge a formal complaint against Portugal.

The draft law transposing the European directive establishing rules for the sale of non-performing loans (NPLs) was already approved by the Council of Ministers (CM). This was the first step towards transposing the directive into national law, the deadline for which was 29 December 2023, prompting the European Commission to take Portugal to the European Court of Justice.

The government has “approved a bill to transpose the European directive, which harmonises the rules applicable to credit managers and credit purchasers and supports the development of secondary markets for non-performing loans (so-called NPLs) in the European Union, while ensuring that the sale of such loans does not prejudice the rights of customers (debtors),” according to the CM’s press release.

No further information has been given on the content of the proposal, but Member States have some room for manoeuvre to protect the interests of individuals, particularly when it comes to the sale of mortgage loans.

The next step in the transposition process will be taken by the Assembly of the Republic, where the government’s proposal will be presented and where a few days ago a bill from the Left Bloc on the sale of NPLs was rejected and two resolutions from the PS and Livre were approved, recommending that the government speed up the transposition and calling for the protection of individuals.

The legislation in question is important for families, as the sale of loans that they have stopped paying has taken place without a specific legal framework, with many individuals being informed of the sale by the buyer. E

At this stage, individuals are given the opportunity to repay the loans, but only in one lump sum, which, if they are unable to do so, results in the loss of the assets pledged as collateral. Individuals often complain about the lack of information and the use of aggressive methods to collect debts, especially when this task is outsourced to other organisations.

In its statement on the opening of proceedings against Portugal, the European Commission stresses that “Directive (EU) 2021/2167 attaches great importance to debtors and includes safeguards to strengthen consumer protection, such as restructuring measures and information requirements to increase the level of transparency in debt collection.

Information requirements to increase the level of transparency in the relationship with the creditor’.

When finally implemented, the effectiveness of the EU legislation will be diminished given the massive sales of non-performing loans already undertaken by banks operating in Portugal in recent years. From 2013 to 2023 alone, banks will ‘cleanse’ their balance sheets of more than 40 billion euros of non-performing loans, a process that will continue in 2024.

Original Story: Público | Author: Rosa Soares
Edition and translation: Prime Yield

Cajamar sells Goriz Advisor and Gannet 18 million in NPLs

24 February, 2025

Cajamar has completed a new sale of a an NPL portfolio. The company has placed the EUR 17.5 million Atenea II portfolio with specialists Goriz Advisor and Gannet. According to market sources, the portfolio consists of 200 NPL (non-performing loans) with mortgage guarantees.

The bank, like most banks, has been removing non-performing assets from its balance sheet for years in favour of funds and specialist investors in order to improve its risk profile. Until last year, it also had an agreement with Haya Real Estate, the servicer acquired by Intrum, for the management of its assets, but when it expired it decided not to renew it in order to deal directly and internally with its own resources.

Original Story: El Economista | Author: Eva Contreras
Edition and Translation: Prime Yield

Mortgage loans are cast aside

21 February, 2025

Vast majority of 211,000 property acquisitions in 2024 made through deposits and cash

Properties worth approximately EUR 23 billion changed hands last year in Greece, according to data from the Independent Authority for Public Revenue (AADE), but only a few involved mortgage credit.

These are real estate purchases and sales prices based only on the contracts that were drawn up, which means that the actual value of the properties transferred is greater, as it is customary for contracts to indicate the taxable price (known as “objective value”) of the property, with a portion of the final amount being paid “under the table.”

In fact, real estate sales in 2024 recorded an increase of around 30% in value compared to 2023, while the first data for this year (from January) show that sales will remain at high levels.

The particularly impressive fact is that of the real estate sales of over EUR23 billion that took place in 2024, only EUR1.5 billion came from mortgage loans. That is, mortgage loans last year approached EUR1.5 billion, when sales were over 15 times higher!

This means that thousands of purchases and sales were made without a mortgage loan – i.e. through deposits and cash. However, the data show that the total deposits held by households in banks amounted to EUR150.3 billion at the end of December, up from EUR146.6 billion in December 2023, recording an increase of EUR3.7 billion in one year.

Of the EUR23 billion, approximately EUR2.5-3 billion came from foreign investors, while EUR2-2.5 billion concerned sales of large properties, such as hotels etc. The remaining EUR18 billion concerned sales of apartments, offices and plots of land. A total of 211,590 transfer declarations were submitted, compared to 174,475 in 2023.

It is noted that in each property transfer there may have been more than one declaration, as the tax office records rights (percentages belonging to each owner).

Notably, the above data only concern property transfers made through the MyProperty electronic application and do not include transfers of agricultural plots.

Original Story: Ekathimerini | Author: Prokopis Hatzinikolaou
Edition and translation: Prime Yield

Santander sells 90 million in NPL to KKR fund

19 February, 2025

Santander continues to reduce its exposure to non-performing assets. According to market sources, the bank has sold a EUR 90 million portfolio of secured non-performing loans (NPL) to KKR as part of the Project Rock transaction.

This is not the first time it has placed assets with the fund. In 2023, KKR acquired a portfolio of nearly €200 million of foreclosed real estate (REO) that the Cantabrian bank had put on the market in the so-called Frankel transaction.

The bank has remained in the market as one of the most active and recurrent operators in this type of sale, closing deals with investors such as Fortress, PRA Iberia, Cerberus and Axactor, among others.

In recent months, it has completed the sale of around EUR 330 million in unsecured loans and other secured financing operations in the Swing project; the sale to Fortress of the Churchill portfolio, with a gross nominal value of EUR 200 million; and the sale to Balbec Capital of the Newman portfolio, which in its case consisted of real estate assets, secured loans and a portfolio of unsecured loans from its subsidiary Santander Consumer Finance.

Original Story: El Economista Author: Eva Contreras
Edition and translation: Prime Yield

Northwall and Arrow win Novobanco’s ‘Pegasus’ NPL portfolio

11 February, 2025

Novobanco has already sold the €289 million NPL portfolio it put up for sale in the last quarter of last year. Northwall Capital paid 30.5 million euros. The portfolio will be managed by Whitestar.
Novobanco’s ‘Pegasus’ portfolio of unsecured non-performing loans, i.e. loans in default without real guarantees, has been bought by the UK fund Northwall Capital. Following this acquisition, the management of the portfolio, dubbed ‘Project Pegasus’, was transferred to Whitestar, part of the Arrow Global group, according to our sources.

The ‘Pegasus’ NPL portfolio consisted of 64,000 debtors with an outstanding value of €289 million. Northwall Capital paid 30.5 million euros for the portfolio, according to Jornal Económico.

On 26 September, Novobanco announced to the market that it would start an organised process to sell a granular portfolio of non-performing loans, known as the ‘Pegasus project’, with the aim of signing the transfer contract by the end of the year.

Original Story: Jornal Económico | Author: Maria Teixeira Alves
Edition and translation: Prime Yield

Attica Bank securitises “Domus” and “Rhodium” NPL

11 February, 2025

Attica Bank, completed the securitisation of its “Domus” and “Rhodium” non-performing loan (NPL) portfolios, with a combined book value of approximately €3.7 billion.

These securitisation transactions were executed simultaneously and were among the most intricate NPL securitisations in the Greek market to date. The Arthur Cox team advised Attica Bank, S.A. on the transaction.

The Bank holds 100% of the senior notes of the ‘Domus’ securitisation, worth € 728 million, and 5% of the mezzanine and junior notes.

In addition, it holds 100% of the senior notes of the ‘Rhodium’ securitisation of €476 million and 5% of the medium and junior notes. 95% of the medium and junior notes of the ‘Domus’ and ‘Rhodium’ securitisations have been transferred to an entity advised by Davidson Kempner Capital Management LP.

The portfolios are managed by Cepal Hellas Financial Services.

Original Story: Capital.gr
Edition and translation: Prime Yield

Number of indebted Brazilians falls in January

10 February, 2025

The percentage of Brazilian families who say they have debts that are due, such as credit cards, overdrafts, shop bills, personal loans or car and house payments, among others, continues to fall, reaching 76.1% in January this year. This is a fall of 0.6 percentage points compared to December 2024 and 2 percentage points compared to the same period last year.

The figures come from the Consumer Indebtedness and Default Survey (Peic), organised by the National Confederation of Trade in Goods, Services and Tourism (CNC). The data for the study were collected from all the state capitals and the Federal District. and the Federal District, with around 18,000 consumers.

According to the authors of the study, the downward trend “highlights the caution of consumers in taking on debt at a time of high interest rates and a tendency for further increases”. This is borne out by the number of families who said they felt ‘very indebted’, which reached 15.9 per cent, the highest level since September 2024. On the other hand, the number of those who said they had ‘no debt’ of this kind rose to 23.9 per cent.

On the positive side of this greater concern, the proportion of families with debts in arrears fell to 29.1 per cent, down from 29.3 per cent in December. However, the figure for January this year is higher than that for January 2024, which was 28.3 per cent.

On the other hand, the proportion of families who said they were unable to pay their outstanding debts fell for the first time since July last year, to 12.7 per cent. This is lower than the 13 per cent recorded in December 2024, but higher than the 12 per cent recorded in January last year.

According to the CNC, the figures are a ‘warning sign for the economy in 2025′. This view was expressed by the president of the CNC-Sesc-Senac system, José Roberto Tadros, in a statement issued by the organisation. High interest rates and selective credit mean that consumers are trying to take on less debt and, as a negative effect, are increasing their perception of indebtedness. The slight improvement in delinquency shows that Brazilian households have made an effort to balance their finances, but the growing commitment of income is a warning sign for the economy in 2025,’ he says.

The Consumer Indebtedness and Delinquency Survey also shows that consumers are managing to pay their overdue bills more quickly, with the percentage of households with debts overdue by more than 90 days falling to 48.9 per cent in January, the third consecutive month of decline.

However, the number of consumers with more than half their income tied up in debt rose to 20.8 per cent, the highest since May 2024, bringing the average income tied up in debt to 30 per cent in January.

Despite the improvement in payment times, debt is consuming a greater proportion of household income, partly due to the reduction in payment terms. Nevertheless, the proportion of families in debt for more than a year fell for the first time since May 2024, reaching 35.9 per cent.

For the authors of the study, the rise in interest rates is restricting credit and forcing consumers to devote more of their income to debt repayments, which is exacerbating the feeling of indebtedness.

The CNC predicts that household indebtedness is likely to increase this year, as families will need to borrow for consumption despite high interest rates. This should keep defaults at a low level in 2025, according to the organisation’s analysis.

The CNC’s survey revealed which debts are the most recurring for Brazilian families. Credit cards top the list, followed by bills, personal loans and home loans.

Original Story: Estadão
Edition and translation: Prime Yield

PQH completes the largest sale of NPL portfolio in Greece

4 February, 2025

PQH, the Special Liquidator for all credit and financial institutions under special liquidation in Greece, announced the closing of the Alphabet transaction, with a total gross book value of EUR4.8 billion and total purchase price approaching half a billion euro, making it the largest non-performing loan (NPL) portfolio sale in Greece.

The closing involved three portfolio transfers. On 15th November 2024, the Alphabet Unsecured/Low Secured Portfolio was transferred to an affiliate of funds managed by Fortress Investment Group. Later, at 17th January 2025, the Alphabet Secured Retail Portfolio was transferred to an affiliate of funds managed by Fortress Investment Group and Bain Capital’s Special Situations business; and last, on 31st January 2025, the Alphabet Secured Corporate Portfolio was transferred to a fund managed by Bracebridge Capital.

The tender process, launched in October 2023, attracted strong international investor interest.

Spyros Rasias, CEO of PQH, stated “The completion of the Alphabet transaction is an important milestone in PQH’s journey as it is yet another strong demonstration of our commitment to the realisation of our mission. With the support of the Bank of Greece and guided by our strategic planning, the success of the transaction proves the resilience and stability of the Greek economy, despite international financial and geopolitical challenges”.

Alex Frangos, Chief Strategy Officer of PQH, added: “The Alphabet closing marks the successful conclusion of a critical chapter in PQH’s strategy, which was focused on accelerating portfolio sales. The result validates our efforts, achieving significant recoveries under difficult global macroeconomic conditions. Portfolio sales will remain a part of PQH’s business strategy going forward, which will be shaped by prevailing market conditions”.

Morgan Stanley & Co. International plc acted as financial advisor and PotamitisVekris law firm as legal advisor to PQH.

Original Story: PQH