Decoding Compliance

TheMReport — News and strategies for the evolving mortgage marketplace.

Issue link:

Contents of this Issue


Page 80 of 83

local edition SECONDARY MARKET Georgia // Equity Loans, a Pennsylvania // Gibraltar Capital and Asset Management, a wholly owned subsidiary of Horsham, Pennsylvania-based Toll Brothers, Inc., recently acquired four new loan portfolios totaling more than $33 million. "These transactions reflect Gibraltar's continuing ability to generate alternative revenues for Toll Brothers and source new opportunities to acquire acquisition, development and construction (ADC), and Fitch Supports FHFA's Private Market Initiatives Calling previous efforts "largely unsuccessful," the ratings agency noted that the organization's latest plans for attracting private capital show promise. se c on da r y m a r k e t Purchasing four portfolios, Gibraltar Capital and Asset Management acquired $33 million in loans. A third priority for FHFA this year is the creation of a new and entirely separate organization to begin laying the groundwork for the future of the secondary market. Fitch deemed this "an important step by the FHFA," but again, the ratings agency warned results will not occur overnight. "[T]his will likely be a timeconsuming process that will not result in a near-term fundamental reform of the housing market in the U.S.," the ratings agency said. In addition to the FHFA's reform goals, Fitch pointed out one other step that could lead to an increase of private capital in the mortgage market: lowering the conforming loan limits. Decreasing conforming loan limits "would significantly increase demand for private capital," Fitch said. A na ly t ic s Toll Brothers' Subsidiaries Announce Acquisitions 50 basis points for new singlefamily loans, according to Fitch. FHFA Acting Director Edward DeMarco stated his intent to raise them even higher during his speech, FHFA's Conservatorship Priorities for 2013. Fitch points out, though, that this is not an easy fix. "The uncertainty regarding the Basel III rules for mortgage assets and risk-retention requirements continue to push up the break-even point for many private market participants," Fitch stated. In addition to raising g-fees, Fitch commends FHFA's intent to participate in risk-sharing. However, Fitch said FHFA's $30 billion goal for 2013 is "very small relative to the outstanding balance of GSE-supported mortgages and recent issuance volumes." s e r v ic i ng residential mortgage industry leader based in Atlanta, announced that after a series of tests regarding its staffing, processes, experience, and organization, it has received Fannie Mae's approval as a seller and servicer of one-to-four-family first lien mortgages for whole loan execution. The approval adds to Equity Loans' extensive list of industry certifications and memberships, including Better Business Bureau Accreditation; Community Mortgage Lenders of America; Lenders One; Mortgage Bankers Association; and the National Reverse Mortgage Lenders Association. "Equity Loans has one of the most diverse portfolios of loan products in the residential mortgage industry, and the ability to sell whole loans to Fannie Mae gives us a greater opportunity to help even more borrowers achieve their dreams of homeownership," said Equity Loans CEO Kunjan Patel. "We're looking forward to a successful and long-standing relationship with Fannie Mae." commercial real estate assets," said Douglas C. Yearley, CEO of Toll Brothers. The four transactions, which took place between November 2012 and February 2013, include loans secured by golf courses, retail shopping centers, and residential properties in Arizona, Florida, Georgia, Maryland, Massachusetts, and Pennsylvania. Three of the four purchases are now wholly owned by Gibraltar, while the fourth was a joint purchase. All four transactions include companies with which Gibraltar has not been involved in the past. Gibraltar Capital and Asset Management was formed in 2010 by Toll Brothers, Inc., to provide real estate acquisition and investment opportunities for the company. Toll Brothers is a luxury homebuilder founded in 1967. Or ig i nat ion a seller and servicer of first lien mortgages. New York // The goal of at- tracting private capital into the mortgage market is at the center of discussions throughout the industry and the government. Thus far, "efforts by the Federal Housing Finance Administration (FHFA) and other federal agencies to provide incentives for the creation of a vibrant private mortgage securitization market have been largely unsuccessful," according to Fitch Ratings. However, the ratings agency does see some promise in a couple of FHFA's goals for this year. While admitting the "effect of higher g-fees [guarantee fees] is likely to be gradual," Fitch believes further increases to the GSEs' g-fees could help level the playing field for private capital. G-fees are already double their pre-crisis levels and average about The M Report | 79

Articles in this issue

Archives of this issue

view archives of TheMReport - Decoding Compliance