Bulk Sale

Bulk sale describes a transaction where a seller disposes of a large group of mortgage notes — often dozens or hundreds — in a single deal rather than selling each loan individually. Banks, hedge funds, government-sponsored enterprises, and large servicers use bulk sales to clear assets from their balance sheets quickly and with minimal operational overhead. The buyer, known as a pool buyer, receives the data tape describing the portfolio, conducts due diligence, and submits a bid covering all or most of the loans.

The primary advantage for the buyer is pricing. Bulk sales typically trade at a discount compared to individual loan purchases because the seller values speed and certainty of close over maximizing recovery on each individual asset. The trade-off is that the buyer must absorb the entire portfolio — including weaker assets alongside stronger ones — rather than cherry-picking only the most attractive loans. Sellers often structure bulk sales as all-or-nothing transactions specifically to prevent cherry-picking, ensuring they can dispose of their full inventory in a single closing.