Category Archives: Investing

Kroll Bond Rating Agency names Van Hesser as head of financial institutions group

Earlier this week, Kroll Bond Rating Agency announced the departure of Christopher Whalen, who served as senior managing director and head of research for the last three years.

One of Whalen’s roles was as the head of the company’s financial institutions, and the company announced Thursday that it found a replacement for Whalen from within its own ranks.

KBRA said Thursday that Van Hesser, who currently severs as head of corporates, will add additional responsibility and serve as the head of financial institutions group as well.

According to details provided by KBRA, Hesser has more than 30 years of experience across financial institutions and corporates.

Prior to joining KBRA, he served as a managing director of the financial institutions group at Wells Fargo Principal Investments.

Prior to Wells Fargo, Hesser spent 10 years with HSBC Securities, where he served as global head of credit research, and was the senior corporate bond research analyst covering U.S. banks, brokers, and specialty finance companies.

Earlier in his career, Hesser worked at Credit Suisse First Boston and Goldman Sachs in each company’s corporate bond research groups, and as well as in corporate finance at Salomon Brothers.

“KBRA’s Financial Institutions group has rated over 100 commercial banks and non-banks, and has expanded its insurance ratings group,” KBRA President and CEO Jim Nadler said. “We look forward to capitalizing on Van’s experience to continue growing in this space alongside the progress we’ve made in corporates.”

Article source: http://www.housingwire.com/articles/39606-kroll-bond-rating-agency-names-van-hesser-as-head-of-financial-institutions-group

Newly appointed Atlanta Fed President Raphael Bostic resigns from Freddie Mac board

Raphael Bostic, the newly appointed president and chief executive officer of the Federal Reserve Bank of Atlanta, will resign from his seat on Freddie Mac’s board of directors later this year, the government-sponsored enterprise announced Friday.

The Atlanta Fed recently announced that it chose Bostic to be its new president. That appointment takes effect on June 5, 2017.

Just before Bostic takes over at the Fed, his resignation at Freddie Mac becomes official. According to the GSE, Bostic, who joined the Freddie Mac board in 2015, will officially resign his post on May 31, 2017.

In addition to serving as a board member at Freddie Mac, Bostic also previously served as assistant secretary for policy development and research at the Department of Housing and Urban Development.

At Freddie Mac, Bostic served on the board’s Risk Committee and Compensation Committee.

In a statement, Freddie Mac’s chairman of the board, Christopher Lynch, said that Bostic’s short tenure on the board was impactful.

“Raphael has been an insightful and valuable member of Freddie Mac’s board of directors,” Lynch said.

“His expertise, experience in public policy matters and passionate interest in access to credit, affordability and other housing issues have been vital to us,” Lynch continued. “Although his tenure on the Freddie Mac board has been brief, our directors recognize his significant contributions, and I am confident he will be an exemplary leader of the Federal Reserve Bank of Atlanta.”

Bostic also spoke highly of his time on Freddie Mac’s board.

“My time on Freddie Mac’s board of directors has been very gratifying,” Bostic said.

“It has been a privilege to have contributed to Freddie Mac’s progress in becoming a stronger company and in helping to build a better housing finance system,” Bostic added. “I want to thank my fellow board members and the management team and wish the company success going forward.”

Article source: http://www.housingwire.com/articles/39609-newly-appointed-atlanta-fed-president-raphael-bostic-resigns-from-freddie-mac-board

Freddie Mac sells $667 million in NPLs to private investors

As its fellow government-sponsored enterprise did earlier in the week, Freddie Mac announced Friday that it is selling hundreds of millions of dollars in non-performing loans to a familiar series of private investors.

First, it was Fannie Mae’s turn to sell off 9,400 non-performing loans that carry an unpaid principal balance of $1.68 billion.

Then, Freddie Mac announced that it is selling 3,621 non-performing loans that carry an unpaid principal balance of $667 million.

In the sale, which Freddie Mac first announced last month, three private investors bought up the non-performing loans.

All three of the winning bidders, Pretium Mortgage Credit Partners I Loan AcquisitionUpland Mortgage Acquisition Company II, and Rushmore Loan Management Services, are repeat buyers of NPLs from Fannie Mae and Freddie Mac.

Last year, for example, those three investors bought $1 billion in NPLs from Freddie Mac in one sale.

According to Freddie Mac, this latest NPL pool was split into four smaller “geographically diverse” pools. Investors had the “flexibility” to bid on each pool individually or a combination of pools, Freddie Mac said.

Freddie Mac said that the loans in this sale are “deeply delinquent,” having been delinquent for more than two years, on average.

Freddie Mac also said that given the deep delinquency of the loans, the borrowers “have likely been evaluated previously for or are already in various stages of loss mitigation, including modification or other alternatives to foreclosure, or are in foreclosure.”

The pool of NPLs also includes mortgages that were previously modified and subsequently became delinquent. Loans that were modified and became delinquent make up approximately 50% of the aggregate pool balance, Freddie Mac said.

Additionally, the aggregate pool has a loan-to-value ratio of approximately 89%, based on Broker Price Opinion.

Per details from Freddie Mac, Pretium Mortgage Credit Partners I Loan Acquisition was the winning bidder on two of the pools, totaling $314.4 million in unpaid principal balance.

Pool #1 consists of 1,171 loans with an unpaid principal balance of $203 million. The collateralized LTV range of the loans is less than 90%. The BPO CLTV on the loans is 71%.

The loans in Pool #1 have an average loan balance of $173,300 and are an average of 31 months delinquent.

Pool #2 consists of 700 loans with an unpaid principal balance of $111.4 million. The collateralized LTV range of the loans is less than 90%. The BPO CLTV on the loans is 69%.

The loans in Pool #2 have an average loan balance of $159,100 and are an average of 20 months delinquent.

Upland Mortgage Acquisition Company II was the wining bidder for Pool #3, which consists of 830 loans with an unpaid principal balance of $171.2 million. The collateralized LTV range of the loans is greater than or equal to 90% and less than 110%. The BPO CLTV on the loans is 99%.

The loans in Pool #3 have an average loan balance of $206,300 and are an average of 26 months delinquent.

Rushmore Loan Management Services was the wining bidder for Pool #4, which consists of 920 loans with an unpaid principal balance of $181.4 million. The collateralized LTV range of the loans is greater than or equal to 110%. The BPO CLTV on the loans is 136%.

The loans in Pool #4 have an average loan balance of $197,200 and are an average of 26 months delinquent.

According to Freddie Mac, the transaction is expected to settle in May 2017, and servicing will be transferred post-settlement.

Article source: http://www.housingwire.com/articles/39612-freddie-mac-sells-667-million-in-npls-to-private-investors

Bunk Beds