Mortgage Daily Logo

No Shortage of Secondary Investors

Mortgage News

Secondary mortgage transactions continue to be strong, though the government has a big role in some of the deals. In all, nearly $3 billion in residential transactions and more than $6 billion in commercial real estate transactions were recently tracked.

In recent months, the Federal Deposit Insurance Corp., as a receiver for failed banks, has closed on three sales of 40 percent equity in limited liability companies that were created to hold the assets of failed banks. The FDIC retained a 60 percent stake in the assets.

In one sale, Los Angeles-based Colony Capital Acquisitions LLC, with minority-owned Cogsville Group LLC of New York as its junior equity partner, invested in an unpaid principal balance of approximately $1.85 billion from 22 failed bank receiverships.

In another sale, a variety of investors paid par for the senior certificates that were part of a securitization backed by approximately $471.3 million of performing single-family mortgages from 16 failed banks.

The National Credit Union Administration announced on Oct. 28 the settlement of its offers of two series of senior notes, each backed by a separate pool of securitized residential loans that came from failed credit unions. More than 35 investors participated in the transactions, which met with strong investor demand and were oversubscribed, according to the Alexandria, Va.-based NCUA. Investors included credit unions, banks, broker-dealers, insurance companies, money management funds, pension funds and government agencies.

In other secondary activity, Tampa, Fla.-based Walter Investment Management Corp. purchased two pools of residential first lien mortgage loans utilizing some $20 million of proceeds from an equity offering. The pools consist of performing fixed and adjustable-rate mortgages on single-family, owner-occupied residences primarily located in the southeast.

In one of the largest commercial transactions, JPMorgan Chase & Co. purchased a $3.5 billion portfolio of approximately 3,800 multifamily and commercial real estate loans from Citibank, N.A. The purchase contained only performing loans on properties that have shown strong credit performance, according to Al Brooks, head of commercial term lending at JPMorgan.

A third FDIC sale involved a three-party consortium comprised of Milestone Asset Opportunity LLC, Toll Brothers Inc. and PMO Loan Acquisition Venture LLC, which is controlled by Oaktree Capital Management LP, invested in approximately $1.7 billion of primarily non-performing commercial acquisition, development and construction loan assets and REOs out of AmTrust Bank.

The aggregate value of commercial real estate loans that collateralize CMBS has been growing for most of this year, according to Boston-based loan sale advisors DebtX. This increase has occurred because of a falling yield curve and strong demand for product, according to DebtX CEO Kingsley Greenland.

DebtX itself will sell $1.1 billion in commercial and residential real estate loans in 10 separate transactions through early December, an Oct. 21 announcement indicated. The transactions, which include $784 million in commercial loans and $363 million in residential loans, are being executed on behalf of commercial banks, insurance companies and mortgage servicers, Greenland said.

A report Wednesday from DebtX said prices on securitized mortgages fell to 80.5 percent in September from 81.0 percent in August. The data were based on 56,992 loans for $667.5 billion that DebtX priced during September. Still, values were higher than 77.2 percent a year earlier.

In addition, DebtX in a joint venture with KEMA Advisors called KDX Ventures, sold a $234 million portfolio of loans, including 18 multi-family commercial real estate loans on behalf of the U.S. Department of Housing and Urban Development.

“The volume of loan sales reflects the heightened importance among financial institutions of entering 2011 with a stronger balance sheet,” Greenland said of all this activity. “Financial institutions are selling to take advantage of rising loan prices and the growing demand from investors around the world. Given the range of product being offered through early December, DebtX expects active bidding for both performing and non-performing loans.”

Charlotte, N.C.-based Mountain Real Estate Capital, the equity investment arm of the Mountain Real Estate Group, in another REO transaction, purchased from Columbus, Ga-based Synovus Bank a portfolio of 135 residential projects covering an estimated 1,300 acres in the greater Atlanta metropolitan area.

And Chicago-based Waterton Residential acquired $109.5 million of debt secured by four prime multifamily properties located in North Carolina and California.

Related Posts

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

There is No Such Thing as a Free House …

Over the past several years, those who service loans in the State of Washington(1) have seen a dramatic rise in the number of lawsuits in which delinquent borrowers seek to quiet title to their homes on the grounds that lenders are barred from foreclosing based on...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Mortgage Servicer Portfolios

servicing news | mortgages outstanding statistics | foreclosure news   Servicing Portfolios as of 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 Residential Servicing Portfolios by Servicer Last Updated December 14, 2018...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Fannie Mae Profile

Last Updated December 27, 2018 7:38 PM Central   full list | other directories | bank search | SEC filings | execs | m&a | production   Government Takes Over Fannie, Freddie Sept. 8, 2008 The government has seized control of Fannie Mae and Freddie Mac. The move --...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Freddie Mac Profile

Government Takes Over Fannie, Freddie Sept. 8, 2008 The government has seized control of Fannie Mae and Freddie Mac. The move -- which is likely to push mortgage rates lower and provide a sense of stability for the more than 10,000 employees at both companies -- is a...

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...

Newsletter

Don’t worry, we don’t spam