ECC Capital Corp., a real estate investment trust based in Irvine, Calif., has announced the completion of a $1.03 billion securitization of subprime mortgage loans.Encore Credit Receivables Trust 2005-3 contains 14 classes of notes, including what the REIT said would be deemed by investors the equivalent of a net-interest-margin security. "With the class N notes, we were able to monetize approximately $34.5 million of residual cash flow at a 5% yield, which is lower than the implied cost of funding those cash flows with our equity," said John Kohler, executive vice president of ECC Capital. "And in a traditional structure, we would not have received residual cash flow until the required overcollateralization was built up." The joint lead managers of the deal were Wachovia Capital Markets LLC and Countrywide Securities Corp., and the co-manager was Credit Suisse First Boston LLC. ECC Capital, a mortgage finance REIT, can be found online at http://www.encorecredit.com.
-
Doxo plans to fight the FTC complaint, which focuses broadly on consumer finance, but there are signs of confusion about the company's role in mortgages too.
April 25 -
Members of the LGBTQ community were most likely to have experienced housing bias, according to a Zillow survey, which also found many people don't recognize how fair lending laws could help.
April 25 -
Senior executives making over $151,000 would still be subject to such clauses should the rule go into effect this year.
April 25 -
Christopher J. Gallo and his aide, Mehmet A. Elmas, allegedly withheld information in mortgage applications, hiding that borrowers were purchasing second home properties.
April 25 -
Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
April 25 -
Independent mortgage bankers lost the most money ever on every loan originated last year due to higher rates and lower volumes, an industry trade group said.
April 25