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The Secondary Wire

 

The Secondary WireRecent secondary marketing activity

September 4, 2008

By SAM GARCIA

New players have emerged to acquire mortgage loan portfolios — many at significant discounts.

Affiliates of Goldman Sachs have agreed to acquire $1.2 billion in loans and mortgage servicing assets from Popular Financial Holdings, a press release last week said. The deal, expected to close during the fourth quarter, will result in a $450 loss for Popular.

Diversified Mortgage Workout Corp. recently announced it has established $50 million in financial commitments and is negotiating another $100 million in commitments for the acquisition of subprime mortgage portfolios. The White Plains, N.Y.-based company is reviewing potential portfolio acquisitions ranging from $80 million to $100 million and discounted to $15 million to $20 million.

“We see no reason why our company cannot and will not be or become a major player in the discounted subprime mortgage acquisition market,” Diversified President and Chief Operating Officer Victoria Forlenza said in an earlier announcement. “It’s not limited to the big boys only. There is room for us also, and we intend to take full advantage for the benefit of the company and its shareholders.”

LandCap Partners recently reported that it closed on the acquisition of 2,900 loans secured by finished and paper lots in multiple states from Wachovia Bank. Additional loans can be purchased under the deal.

LandCap, based in Los Angeles, said it is looking for additional investments in residential land — including unimproved land parcels and finished single-family lots. It sells and options land to public and private homebuilders and also provides mortgage loans and joint-venture financing to other real estate entities.

R-M-X Group LLC said Monday its electronic secondary market trading exchange for residential mortgage lenders aims to improve liquidity, increase transparency and reduce transaction costs for its participants. The New York-based firm noted large and small banks, wholesale companies, thrifts and other financial institutions as well as brokers will be able to compete on the same basis. R-M-X expects to go live with its exchange and trading platform by early 2009.

Value Financial increased its warehouse line by $2 million, a statement yesterday said. The expansion brings its total warehouse capacity to $5 million.

The Miami-based reverse mortgage lender said the increased capacity will enable it to fund up to 100 transactions monthly. Value reported that it originated more than $125 million in Florida reverse loans last year.

 

Sam Garcia worked in mortgage lending for twenty years prior to becoming publisher of MortgageDaily.com.

e-mail: mtgsam@aol.com

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