Steel Mountain Eyes Performing And Nonperforming Loan Market

Four veteran mortgage acquisition specialists have teamed up to create Steel Mountain Capital, a firm that will purchase performing and nonperforming mortgage loans and other assets.

The new company, which was unveiled last month, is led by Tony Rowe, Tim Campbell, Kelly Garland and Bill Alread, who most recently worked together as senior executives of Security National Principal Acquisitions.

Over the last four years the team was responsible for acquiring and trading over $1 billion in performing and nonperforming mortgage loan portfolios.

The four principals have partnered with Silver Point Capital, an approximately $4 billion investment firm focused on credit analysis and credit-related investments, for financial backing. Silver Point and the four executives own all of the stock in Steel Mountain.

Effective immediately, Steel Mountain will seek to purchase, as a principal buyer, large or small pools of assets including performing loans, nonperforming loans, bad pay histories, missing documentation or other scratch-and-dent loans, junior liens, residuals, consumer loans, subprime loans, commercial loans and REO, simple interest, land loans and agricultural loans.

Additionally, Steel Mountain will offer client-based services, including portfolio analysis, mark-to-market services, rate-shock analysis, asset/liability management, asset-liability committee report preparation, loan sale advisory services, merger and acquisition due diligence and valuation, and mortgage loan servicing valuation and placement.

In a press release, Mr. Campbell said Steel Mountain is "uniquely positioned to provide an unmatched combination of service, expertise, flexibility and capital strength.

"We have further augmented our expertise with Silver Point's world-class resources, and gain the power of its $4 billion balance sheet, enabling us to provide broader and more valuable offerings than ever before," Mr. Campbell said.

Because of the parent company's strong capital position, Steel Mountain executives said they can hold the loans in portfolio. Securitization of loans is also an option.

Mr. Campbell, formerly a senior vice president at SNaP, has more than 33 years experience in banking, including managing a loan servicing department for a major savings and loan as well as helping to organize a secondary marketing department for a large California bank. Mr. Rowe and Bill Alread previously worked at Matrix Capital Bank before joining SNaP. Kelly Wayne Garland was SVP for trading and analytics for SNaP.

"Our focus has always been assisting financial institutions unlock the value of their mortgage portfolios, enabling them to fully utilize their balance sheets to invest in future opportunities," said Mr. Rowe. "We provide accommodating, highly responsive service, rapid decision making combined with certainty that transactions will be completed regardless of the complexity or size of the transaction."

Mr. Rowe told Mortgage Servicing News that the company is in the process of selecting a subservicer to manage loan administration. However, he said the company hopes eventually to build its own loan servicing capacity.

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