Institutional Note Pool Divestitures
A direct, well-capitalized buyer for residential mortgage note pools, NPLs, RPLs, sub-performing assets, and scratch-and-dent files.
For banks, credit unions, private equity funds, asset managers, and institutional sellers, divesting a mortgage note pool requires more than a buyer with interest. It requires capital certainty, professional underwriting, secure data handling, and a team that can move through diligence without unnecessary delays.
Colonial Funding Group specializes in the acquisition of residential mortgage debt across the United States. We evaluate and purchase institutional note pools ranging from seasoned performing assets to re-performing, sub-performing, and non-performing loans.
In a market crowded with brokers and middlemen, Colonial Funding Group stands apart as a direct principal buyer. When we commit to a file, we close.
What We Buy
We acquire residential mortgage note pools across a wide range of asset profiles, including:- Performing first-lien residential mortgages
- Re-performing loans, also known as RPLs
- Non-performing loans, also known as NPLs
- Sub-performing mortgage debt
- Scratch-and-dent assets
- Documentation-deficient files
- Small-balance residential mortgage pools
- Mixed pools with performing and underperforming assets
- Servicing-released assets
Our team is opportunistic and experienced in pricing complex collateral. We understand that not every pool fits cleanly into a standard box. Some files have seasoning issues. Some have documentation gaps. Some include a blend of performing, sub-performing, and non-performing loans.
That is where experienced underwriting matters.
Built for Institutional Sellers
Institutional sellers are often looking for more than a high bid. They need a buyer that can provide:
• Certainty of close
• Discretion throughout the bidding process
• Secure handling of borrower data
• Fair, data-driven pricing
• Efficient tape review
• Professional due diligence
• Experienced asset management
• A clean, compliant transfer process
Colonial Funding Group uses its own discretionary capital. Our offers are not dependent on outside financing or third-party approvals that can fall apart late in the process.
Why Sell to Colonial Funding Group?
Direct Principal Buyer
We are not a broker or platform. You are working directly with the buyer, which helps eliminate extra commissions, unnecessary layers, and delays.
Certain Execution
For over 40 years, Colonial Funding Group has provided reliable exit strategies for residential mortgage note holders. Our team brings more than a century of combined experience in underwriting, valuation, and asset management.
Professional Underwriting
We are equipped to evaluate complex files that other buyers may avoid, including assets with unique terms, seasoning issues, documentation deficiencies, or performance challenges.
Secure Process
We understand the sensitivity of borrower data. During the initial tape review, we can evaluate anonymized data to provide a preliminary bid while protecting personally identifiable information until the appropriate stage of the transaction.
Servicing-Released Acquisitions
We typically acquire assets servicing released and work with licensed national servicers to support a compliant and professional boarding process after acquisition.
How the Process Works
1. Initial Submission
Share the details of your note pool or residential mortgage portfolio with our acquisition team. For institutional sellers, this often begins with a tape review and a discussion around asset profile, performance status, geography, collateral, and servicing.
2. Rapid Valuation
Our underwriting team performs a preliminary analysis and can typically provide a soft quote or Letter of Intent within 72 hours, depending on the quality and completeness of the data provided.
3. Due Diligence
Once pricing is aligned, we conduct a focused review of the collateral file, payment history, title, servicing information, and other relevant documentation. Our goal is to complete diligence efficiently while reducing unnecessary administrative burden on the seller.
4. Seamless Closing
After due diligence is cleared, we fund the transaction and coordinate the necessary transfer steps. We handle the heavy lifting so the closing process is organized, professional, and timely.
Frequently Asked Questions
What is your preferred asset profile?
We are opportunistic buyers. We look for everything from seasoned, performing first-lien mortgages to sub-performing and non-performing pools. We are particularly experienced in pricing scratch-and-dent files and assets with documentation deficiencies.
How do you handle sensitive borrower data during the bidding phase?
Security is a priority. We utilize encrypted data rooms for due diligence. During the initial tape review, we only require anonymized data to provide a preliminary bid, helping protect personally identifiable information until an LOI is executed.
Are you buying the servicing rights as well?
Yes. We typically acquire assets servicing released. We have established relationships with licensed national servicers to support a compliant and ethical boarding process after acquisition.
Do you buy non-performing loans?
Yes. We acquire non-performing loans and price them based on the underlying real estate value, borrower status, collateral, payment history, and potential resolution strategy.
Can you buy a mixed pool of performing and underperforming assets?
Yes. We regularly evaluate pools with a blend of performing, re-performing, sub-performing, and non-performing assets. Our underwriting team can price each segment appropriately and provide a blended acquisition strategy when needed.
How quickly can you provide a bid?
Depending on the size of the pool and quality of the data, our team can often provide a preliminary soft quote or Letter of Intent within 72 hours of receiving the necessary information.
What information do you need to review a pool?
For an initial review, a data tape is typically the best starting point. Helpful fields may include unpaid principal balance, interest rate, payment status, property state, collateral type, lien position, borrower payment history, and current servicing status. Additional documentation may be requested during due diligence.