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Marketplace lenders are seizing on current investor enthusiasm after the December public listing of LendingClub. SoFi and Funding Circle have set new origination targets, and new capital markets deals may help replace bank credit lines for Blue Elephant Capital Management and perhaps others.
January 28 -
Capital markets hold the key to the future for the consolidating Wall Street landlords, but the path through is downright bloody.
January 13 -
Private investors backing firms like RPM Mortgage are placing bets on lenders in the U.S. home loan business once dominated by Wall Street's largest banks.
November 5
New Oak Capital's asset management unit has quietly launched a private fund to buy a particular kind of high-yielding mortgage the kind NewOak's advisory arm is encouraging lenders to originate.
The fund, named Super Jumbo Mortgage Acceptance Corp., will specialize in buying newly originated, nonqualified residential mortgages with slightly weaker credit than a traditional prime jumbo loan, according to a person with direct knowledge of the matter.
SJMAC, which the person described as a hedge fund, launched with a "significant amount of capital" to purchase non-QM loans, but it is also seeking a
Ray Jahaly, a managing partner at the New York firm, is a chief contact person for SJMAC, the person also said. Jahaly did not respond to multiple messages requesting comment. According to Finra records, Jahaly first registered with NewOak in 2012, and has previously worked on capital markets teams at BrookView Capital, Credit Suisse and Lehman Brothers.
"It is our policy not to make any comments about the private funds managed by NewOak Asset Management," NewOak chief executive officer and cofounder Ron D'Vari said when reached by email.
Investment firms have zeroed in on the mortgage industry's regulatory woes and they hope to take advantage of the credit voids that banks created when they withdrew after the crisis. NewOak president and cofounder James Frischling wrote in an
Investors, struggling with persistently low rates thanks to the Federal Reserve, are seeking out riskier and higher-yielding securities, like the ones SJMAC wants to buy. Demand has so far
No firm has successfully securitized a mortgage-backed security made up of entirely non-QM collateral because originations have been slow. Lenders aren't sure if they can make
A different NewOak subsidiary, which provides advisory and credit services, is encouraging lenders to originate more nonqualified residential mortgages.
Current clients consist of smaller banks and independent mortgage bankers that are serving borrowers with strong credit, but nontraditional income sources, to make loans ranging from $1 million to $3 million, some of which have debt-to-income ratios touching 49%, according to the person.
The credit services unit is also selling a "Mortgage Defense Package," with services intended to "help mortgage originators and investors address increased regulatory and enforceability risks," according to a press release.
