Secondary

The enormous issuance is backed by a single loan secured by first-priority mortgages on a pool of about 6,148 single-family rental homes, and 299 townhouses.

The Alabama company agreed to buy two nonbank lenders earlier this year. It’s still on the lookout for possible deals, potentially in corporate finance or wealth management, its chief financial officer told American Banker.

The firm, dubbed Polpo Capital, is looking to produce a 15% net return to investors with modest leverage by capitalizing on the coming distress in commercial mortgage debt as forbearance agreements expire

Several housing groups wrote a letter calling for “substantially improved written proposals” for the period starting in 2022, and support for chattel manufactured-home loans.

One winning bidder, who bought two of the four pools in the government-sponsored enterprise’s nonperforming loan offering, is a repeat buyer affiliated with a minority- and women-owned business.

The reception in the market to structured single-family CRTs' return at the government-sponsored enterprise was strong enough for it to plan to follow up this transaction with another one next month.

Gain on sale has dipped 130 basis points per loan since the third quarter last year, but over the same period, per loan expense is up by $1,216.

CEO Michael DeVito told attendees at the Mortgage Bankers Association’s annual convention in San Diego that the move is among the types of “cash-flow underwriting” updates the government-sponsored enterprise is considering.

The multichannel lender plans to expand its footprint in the non-agency market as a result of the majority shareholder investment in the company changing hands.

The bonanza from Wall Street operations is a source of relief for banks struggling to earn more from traditional lending operations, which have suffered from lukewarm demand and a prolonged period of low interest rates.