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If you have a question that is not addressed here, submit a question and let us know, For questions on a specific offering, please contact us directly and reference the specific portfolio. You must be a registered First Financial Network, Inc. Qualified Buyer to receive detailed information on specific portfolios.
Frequently Asked Questions by Sellers
Frequently Asked Questions by Buyers
Frequently Asked Questions by Sellers
What types of products are sold at an auction?
FFN has differentiated itself among loan sale advisors by marketing the broadest range of products, including performing, sub-performing and non-performing loans. FFN's technical capacity is proven by the complexity of assets which it sells. Such assets include small business loans, commercial and residential mortgages, consumer loans, lines of credit, participations, real estate, judgments, deficiencies and charge-offs.
What type of auction formats are used?
FFN offers a variety of sale formats to its clientele including: online competitive bidding (bidders can view other bid amounts), competitive sealed bid (bids remained sealed until set time and highest bid wins), public "outcry" auction, limited offerings, select bidder pool and negotiated sale.
Is the Seller anonymous?
No. However, the Seller's name is not disclosed until a properly executed Confidentiality Agreement is received and verified from potential bidders. The decision on whether to advertise an organization's name is completely at the Seller's discretion.
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Who are the Sellers of these portfolios?
FFN sells financial instruments on behalf of governmental agencies, financial institutions, banks, mortgage companies, insurance companies, credit card issuers and others.
How do I know that the Buyer of my portfolio is credible?
Qualified buyers go through a stringent screening process to assess financial strength, industry reputation, past acquisition performance and company validation.
Does the Seller have to sell the pool(s) at the end of the auction?
No. The Seller reserves the express right to withdraw from a sale any loan, pool or group of loans at any time or to accept or reject any and all bids at its sole discretion. Seller further reserves the absolute right, in their sole discretion, to postpone or cancel the sale at any time.
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How do I know that sensitive information is secure?
In order to access detailed information about an offering, a user is required to download, execute and fax a Confidentiality Agreement and Certification Statement. This is a hands on, qualified assessment , not an automated process. The documents are reviewed by executive level staff to determine if access and user name and password will be provided. Since its primary function revolves around highly sensitive internal information, First Financial Network, Inc. has chosen to encrypt all online data utilizing a combination of a Server Certificate and 128-bit SSL encryption, based on the RSA algorithm, provided through Thawte, a VeriSign company. This combination provides the authentication of the server ID via a digital certificate, message privacy through the use of public, private and session keys, and message integrity by utilizing code based on specific message content. This ensures protection when communicating with both domestic and export versions of Netscape Communicator and Internet Explorer. From an online perspective, the above referenced 128-bit SSL encryption will prevent virtually all unauthorized access to restricted areas. Highly sensitive information is maintained internally on red "key" disks and stored in a separate fireproof vault. This "key" disk is the only stored location for this information and must be directly accessed for internal analysis or reporting uses only.
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Frequently Asked Questions by Buyers
What is a Proxy Bid?
A predefined maximum amount a Bidder is willing to offer for a pool. The bid is automatically increased as necessary to either win the pool or reach your Maximum Proxy Bid. The maximum bid automatically submitted by proxy will vary depending on the status of the Minimum Reserve Price.
Example 1: A pool has a Minimum Reserve Price of $10,000. The Bid Increment is $1,000, the High Bid is $11,000 and the Proxy Bid is $25,000. The amount First Financial Network, Inc. would bid on your behalf is $11,100. If a subsequent bid were received for $25,000, you would have to tender another bid since the Maximum Proxy Bid had been reached. However, if the High Bid is $5,000, a bid of $10,000 would automatically be tendered automatically on your behalf.
Example 2: Standard Proxy
Maximum Proxy Bid $300,000
Bid Increment $10,000
Minimum Reserve Price $200,000
High Bid $225,000
Proxy Bid
(Amount Automatically Bid on your behalf) $235,000
Example 3: Bidding Exceeds Maximum Proxy Bid
Maximum Proxy Bid $200,000
Bid Increment $10,000
Minimum Reserve Price $200,000
High Bid $200,000
Proxy Bid
(Amount Automatically Bid on your behalf) $0
Requires a new bid
Example 4: Unfulfilled Minimum Reserve Price
Maximum Proxy Bid $300,000
Bid Increment $10,000
Minimum Reserve Price $200,000
High Bid $150,0000
Proxy Bid
(Amount Automatically Bid on your behalf) $200,000
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What is an Unconditional Bid?
An unconditional bid is a single bid submitted once, that is not automatically increased. The Bidder must tender a new bid to raise the bid.
What is the dollar amount of the Minimum Reserve Price?
Minimum Reserve Prices are not disclosed.
Why should I register?
Registering allows you to be added to the First Financial Network, Inc.
Database of qualified buyers and gives buyers and their organizations the opportunity to apply to and participate in upcoming sales listed with First Financial Network, Inc. by top tier clients. Registering is a simple process, is free of charge and takes just a few moments to complete the requisite documentation. Registration is not an automated process but handled manually by qualified FFN staff.
Can I talk to a real person?
FFN has a team of highly qualified, asset marketing experts. Unparalleled industry service is the foundation of our business strategy. A project facilitator is posted for every offering and a team of offering representatives are available to directly communicate regarding the portfolio at any time in person, via telephone, facsimile or e-mail. Please call 800.245.8695 and let us know the kind of help you require - data specific, loan specific, bidding process, or technical support. This will allow your call to be forwarded to the most qualified service representative to quickly get you the information you need.
What is a Minimum Reserve Price?
The minimum purchase amount acceptable to the Seller. The Seller may reject any and all bids less than the MRP. The MRP is disclosed solely at the Seller's discretion.
Can I draft my own purchase agreements?
The documents in the bid package, including the loan sale agreement, are not negotiable. Prospective bidders are urged to read, review and analyze the loan sale agreements and the other documents prior to submitting a sealed bid and to make certain that they completely understand the provisions therein and that they are willing to agree and be bound by all terms, provisions and conditions of the loan sale agreement(s) and all other documents before making any bid.
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What if there is a tie?
The first bidder to submit the high bid wins. This scenario can occur in the case of a proxy bids against an unconditional bid.
Can I change the Bid Form?
No. The bid form is a legally binding document that is approved by the Seller. All bidders are required to use the same form.
Can you disclose the names of the other bidders?
No. All personal information regarding names of bidders is confidential.
How do I qualify to bid?
To qualify, a bidder must properly complete all applicable Certifications and submit to FFN on or before bid date (i) Sealed Bid Form(s); (ii) An Initial Deposit in the amount described in the Terms of Sale; (iii) representation that bidder is a financial institution or an institutional purchaser or other sophisticated entity which is in the business of buying, originating or selling loans for its own account, or which otherwise deals in such instruments in the ordinary course of its business, or is otherwise an accredited investor; and (iv) duly executed Confidentiality Agreement.
Does the Seller provide warranties on the loans?
All loans are purchased "as is", "where is" "with all faults" and without representations, or warranties, express or implied, of any type, kind, character or nature, and without recourse, express or implied, of any type, kind or nature by seller, except as set forth in the applicable agreement. Neither seller nor FFN shall be liable for any errors or omissions or for the accuracy of any information concerning the loans or pools or contained in the loan files or on the cd-roms for the loans included in this loan sale.
How and when is the winner notified?
Successful purchasers will be notified via electronic mail, facsimile and overnight mail upon approval by the Seller. The time period allowed for bid award is clearly described in the Terms and Conditions of Sale. In addition to bid award notification, the successful purchaser will receive detailed closing and funding instructions.
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How can I change my Proxy Bid?
Simply submit a new Proxy Bid which is higher than your last Proxy Bid. (A Proxy Bid can only be changed by raising it.)
How do I bid on a Pool in an online auction?
Pre-Sale Activities
- Complete the Registration Process.
- Execute Confidentiality Agreement and Certification by Proposed Purchaser and remit via facsimile to 405-748-4111.
- Receive sale site URL, user name and password via e-mail from FFN.
- Log in using user name and password.
- Review current offering and select pools of interest.
- Choose method of due diligence - as appropriate.
- Review all legal documents governing the auction.
Bidding
- Once registered for an on-line sale, click on the Bid Room tab located on the secured sale site (URL distributed with registrations approval).
- Choose Proxy Bid or Unconditional Bid
- If you selected Unconditional Bid: The entire amount you want to bid is submitted immediately. To increase this amount, you must select Unconditional Bid again and enter the new bid amount.
- If you selected Proxy Bid: The bid amount you enter is the maximum amount you are currently willing to pay for the pool. The amount of your first bid will be the Minimum Bid Amount which is the lowest value you can offer. This amount is equivalent to the Highest Bid plus the Bid Increment amount. For the Opening Bid, the Seller defines the amount. Your bid will be automatically increased by either the Bid Increment amount or the amount necessary to exceed the high bid. It will not be increased greater than the Maximum Proxy Bid specified. If the Minimum Reserve Price has not been achieved for the Pool, and it is lower than your Maximum Proxy Bid, your bid will be equal to the Minimum Reserve Price.
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How do I know that the imaged documents are all that is really in the loan file?
Certain information and documentation may be missing or may have been removed from each and every loan file - (hard copy or electronic). All prospective bidders and purchasers are hereby advised that the information and documentation which may be missing or may have been removed from any particular loan file may include significant material information which, if made known to any prospective bidder or purchaser, could have a direct impact upon perceived, apparent or actual (i) value, (ii) merits, (iii) risks, and/or (iv) hazards inherent with respect to any loan or pool. The risk that such information might be pertinent in order to make an informed decision with respect to the value of any particular loan or pool shall be borne by the purchaser of any particular loan or pool. Therefore, each and every prospective bidder and/or purchaser of any loan or pool is urged, invited and directed to conduct such due diligence, review and analysis of the loan files and such records as may be available to the public from local, county, state and/or federal authorities, courts and record-keeping offices as such bidder may deem necessary, proper or appropriate.
How do I know that the information I provide is secure?
Website security is maintained through a combination of encryption methods. Since its primary function revolves around highly sensitive internal bank and government information, FFN has chosen to encrypt data utilizing a combination of a Server Certificate and 128-bit SSL encryption, based on the RSA algorithm, provided through Thawte, a VeriSign company. This combination provides the authentication of the server ID via a digital certificate, message privacy through the use of public, private and session keys, and message integrity by utilizing code based on specific message content. This ensures protection when communicating with both domestic and export versions of Netscape Communicator and Internet Explorer.
How much does it cost to register to bid?
Nothing. Registering with First Financial Network, Inc. as a qualified buyer is free and does not require any obligation.
What is Confidential Information and why do I have to sign a Confidentiality Agreement?
Confidential Information includes: (a) all documents, files, reports, images and other information relating to or in any way pertaining to the Assets; (b) all information written or oral provided in response to any request from prospective bidder; (c) all electronically produced information in any form; and (d) the name or identity of the Seller. The prospective bidder agrees that its review and inspection of the Confidential Information shall be solely to conduct due diligence, on its own behalf, for the sole purpose of determining whether or not to submit a bid to purchase some or all of the Assets, and for no other purposes. The prospective bidder agrees that any credit or consumer report information contained in the Confidential Information will be used by the prospective bidder solely for the purpose of analyzing the credit transaction involved or the collect ion ability of such loan. Agreeing to these provisions maintains the borrower's rights and protects the seller from liability.
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How soon do I have to pay for the pool after the auction?
No later than forty-eight hours after notification by Seller to successful bidder of Seller's acceptance of its bid, each successful bidder shall pay an additional amount ("minimum deposit") which, when added to the initial deposit (or the allocable amount thereof if more than one pool is purchased by a single bidder), shall be equal to ten percent (10%) of the successful bid amount. This will be applied to the purchase price as set forth in the respective Agreements. The initial deposit (or allocable amount thereof if more than one Pool is purchased by a single bidder) shall be the minimum deposit if it exceeds 10% of the purchase price. All additional sums necessary to meet the 10% minimum deposit must be in the form of a cashier's check (without intervening endorsement) or by wire transfer, as directed in the Loan Sale Agreement. All successful bidders will be required to execute and deliver three (3) original counterparts of the Agreement for the pool or pools successfully bid upon within one (1) business day following delivery. Purchasers must remit the remaining unpaid balance of the purchase price as established and set forth in the Loan Sale Agreement on or before that date.
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