Mortgage Daily Logo
mortgage news from industry experts

Distressed Portfolios Finding Buyers

Distressed Portfolios Finding BuyersRecent secondary marketing activity

May 20, 2009

By staff

Two California investment funds — including one launched today — are targeting distressed residential portfolios. In other secondary news, mid-sized banks are being targeted for a new warehouse lending platform, and Freddie Mac outlined revised requirements for conforming jumbo loans.In seller-servicer Bulletin 2009-12 last week, Freddie reiterated that maximum super conforming loan limits are based on the note amount.

Freddie said that an April 25 loan-to-value matrix provided a simplified format but reflected no actual changes in LTV limits.

Sellers were reminded to provide the secondary lender with a certificate of incumbency by the end of this month.

Occasio Distressed Residential Fund has been launched by Redwood Real Estate Partners Inc., according to a press release today.

The Rancho Santa Margarita, Calif.-based investment firm said it “aims to leverage current market conditions and acquire $500 million in distressed residential real estate assets while offering sellers a seamless way of liquidating those assets.”

Dubbed “Occasio ResCap,” the new fund will handle acquisitions. It will also manage risk analysis as well as pricing, underwriting and liquidation.

“Because it is a fully funded entity that is sponsored by Redwood, Occasio ResCap has the capital to close sales and mitigate sellers’ risk,” Redwood stated.

John Duden, a founding partner of Fasthold Capital, will oversee the new entity as its president. Fasthold’s business was similar to that of the new fund; it acquired, restructured and liquidated residential whole loans and real-estate-owned portfolios.

“We launched Occasio ResCap to provide an effective exit strategy to sellers of residential real estate assets looking for liquidity,” Redwood founder and Chief Executive Officer Carl Chang said in the statement.

On May 5, G8 Capital LLC reported its 15th distressed portfolio acquisition. The acquisition consisted of 182 residential REO properties in 27 states.

G8 said that its bid was accepted over a higher bid because it closed the acquisition with just two hours notice. The highest bidder was unable to accommodate a same-day month-end closing.

G8, based in Ladera Ranch, Calif., said it will consider portfolios across the country but prefers to focus on the West. Following loan acquisition, borrowers are approached for loan workouts — including loan modifications.

A turnkey warehouse lending platform has been launched by Mortgage Warehouse Network, a statement Friday said. The offering, targeted at a limited number of mid-sized banks, includes back-office operations, systems and staff.

“Banks have the ability to fund their first loans within 60 days of signing up,” the Houston-based service provider said. “Mortgage Warehouse Network provides the systems, policies, procedures and human capital required to initiate and maintain a warehouse line, in addition to providing the financial modeling and managing the ongoing credit analysis.”

Titan Lenders Corp. offers a competing warehouse platform targeted at community banks and credit unions.

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts