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WaFd Bank Completes Sale of $2.8B in Multifamily Loans
Washington Federal Bank, a subsidiary of WaFd, Inc. WAFD, has sold nearly $2.8 billion of multi-family commercial real estate loans to Bank of America. The transaction, the largest non-FDIC-assisted CRE loan sale ever recorded, was executed at 92% of the principal balance.
According to a regulatory filing by parent company WaFd, the 2,000 multifamily loans have a current unpaid principal balance of $3.2 billion, and the sale is being facilitated in a bid by the regional lender to scale down its exposure to the commercial real estate sector.
Subsequently, BAC sold these loans to Pacific Investment Management Company LLC, which will eventually manage the loans. The divested CRE loans were part of the Luther Burbank Savings, which WAFD acquired in February.
