Capital Markets Cooperative has signed a strategic alliance deal with MountainView Capital Group, Denver, giving the investment banker preferred vendor status as an investor in 'scratch and dent' mortgages.
A MountainView spokesman said the alliance means "CMC will come to us if they have whole loans that they need to sell," adding that the agreement doesn't necessarily mean MountainView will wind up as the buyer of such notes.
The investment banker will have competition for the loans but hopes that it will win the bid.
"It will be up to the individual members to work with us," said the spokesman. CMC is a cooperative of 45 lenders, including both banks and nondepositories.
There is an active secondary market for SnD loans, which represent notes that are kicked back to lenders by secondary market investors, including the GSEs.
MountainView has an active whole loan trading desk.
CMC CEO Tom Millon noted that loan kickbacks "have the potential to significantly impact" its members' profitability, "and MountainView's program is a solution we trust."
