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| Larger loans insured by the Federal Housing Administration under H.R. 5140, the Economic Stimulus Act of 2008, will be eligible for submission to the Government National Mortgage Association next week. Two other companies are looking to bid on less liquid loan pools, though at steep discounts, while agency securities were recently sold at a 3 percent discount.
A $211 million portfolio of Fannie Mae-issued mortgage backed securities was unloaded by New York Mortgage Trust Inc., an announcement said. The move resulted in a $6 million charge and was made in an effort to reduce leverage in a volatile market. The real estate investment trust said it held around $783 million in agency MBS, $408 in prime adjustable-rate mortgages and $31 million in AAA-rated non-Agency MBS as of March 10. LendingGateway.com is looking to acquire $150 million per month in REOs and non-performing notes in Arizona, California and Nevada, a press release last week said. The San Diego-based company touted relationships with domestic and foreign investors. “We’re in this to turn around as much inventory as possible in 2008,” Alex Capio, chief executive officer, said in the statement. G8 Capital LLC reported five loan pool acquisitions since launching in December, with $40 million in total closings estimated through next week. The Ladera Ranch-based company said it bids on performing, non-performing and REO loans valued from $3 million to $30 million. Deals are quickly closed on notes discounted between 20 percent and 50 percent, then G8 negotiates principal reductions with the borrowers. Oxford Funding Corp. announced a road show for its $100 million hedge fund was well received by major New York “houses,” with its first group of investors on board, “and the first segregated sub-account has been fully subscribed.” Houston-based Oxford, which reported a 90 percent return on its portfolio last year, said its strategy is to acquire residential portfolios from banks and large lenders at discounts of as much as 70 percent, restructure the mortgages if necessary, and liquidate at “significant gains.” Ginnie Mae announced lenders can begin submitting pools of higher-balance FHA loans originated under temporarily raised limits on March 24 for April 1 issuance. In high-cost areas designated by the U.S. Department of Housing and Urban Development, the FHA limit has been raised to $729,750 until Dec. 31 under the recent emergency economic stimulus package. The government-owned corporation said it created a new, multiple-issuer pool type under the Ginnie Mae II MBS program. |
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Sam Garcia worked in mortgage lending for twenty years prior to becoming publisher of MortgageDaily.com. e-mail:Â mtgsam@aol.com |
