Stanford Invests in Company Hounding Mortgaged Families
School's endowment earns money when homes get foreclosed
By JACKSON WEST
Updated 1:15 PM PST, Fri, Jul 10, 2009
Stanford University is the primary investor in a company called NC Ventures, which buys home loans gone bad in order to get property owners to pay up.
NC Ventures, which purchases bad loans from the Federal Deposit Insurance Corporation, argues that the real estate is so cheap they can often settle profitably by cutting a better deal for the debtor.
While the company is adding to Stanford's $17.6 billion endowment, the publicity costs were too much for former investors Yale and Harvard.
The North Carolina company declined to discuss its relationship with Stanford, and the school would not confirm or deny its investment.
At least the school isn't cashing in on defaulted private student loans, or else students on campus might actually care.
Photo by Lee Brimelow.
Jackson West figures his alma mater, NYU, is probably buying half of Brooklyn on the cheap right now.
Copyright NBC Local Media
First Published: Jul 10, 2009 12:30 PM PST
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