Investor Wants To Buy Jumbos

BlackRock Inc. hopes to purchase upwards of $250 million of jumbo loans each quarter with an eye toward securitizing the product.
"We’ve committed $1 billion in capital to the program and we have warehouse lines in place," said Randy Robertson, a BlackRock managing director who is co-head of its securitized asset team.
The money management company likely will not fund any product with LTVs too far north of 80%.
Robertson said the company-founded by MBS co-inventor Larry Fink-is open to buying jumbo loans from lenders of all different charters and sizes. "We’re looking for high-quality assets that come from management teams that have tenured job status," he said.
He added that investor demand is there to support more jumbo deals. In April, Redwood Trust, a publicly traded REIT, issued a $222 million jumbo MBS, the first such securitization in 18 months. But since that bond came to market, no other nonconforming deals have been structured.
Redwood hopes to issue another security early in the first quarter and is actively buying loans from correspondent mortgage bankers. (One of BlackRock’s largest shareholders was another large player in jumbos, Bank of America, but last week B of A sold its 34% stake in the company.)
Several companies are rumored to be working on jumbo conduits, but few have publicized the fact.
Robertson joined New York-based BlackRock in 2009 after having spent 10 years with Wachovia Capital Markets, most recently as managing director in charge of the residential mortgage and consumer group. He also worked for The Money Store, a home equity lender later bought by First Union Bank.