Hedge Fund Buys Into Hard-Money Lender

A hedge fund called Pacifico is working on a deal to buy into Quality Home Loans of Agoura, Calif., industry sources have confirmed to MortgageWire.A QHL spokeswoman described the hedge fund as a "partner" but said a public announcement has yet to be made. A nondepository, QHL is owned by John Gaiser, who is also the lender's chief executive officer. QHL funds about $500 million a year in loans. In recent months hedge funds have been bottom-fishing for both subprime franchises and delinquent loan pools. QHL can be found online at http://www.qualityhomeloans.com.