Capital Markets Today

NoteExpo, November 2nd-3rd, Dallas TX

Sharestates, an online crowdfunding real estate investment platform, has introduced financing for non-performing loans aimed at providing private real estate investors access to leverage.  By offering to finance up to 80% of the unpaid principal balance or value of the NPL, the crowdfunding company is opening up the NPL market up to a much larger pool of potential private investors.  This is yet another indication that private investors will continue to expand and maintain their presence in the NPL space.

Joining the podcast to discuss the buying of mortgage notes is Eddie Speed.  Eddie founded NoteSchool which is a highly recognized training company specialized in the teaching of buying both performing and non-performing discounted mortgage notes. He is the owner and president of Colonial Funding Group LLC, which acquires and brokers discounted real estate secured notes.

NoteExplo - November 2nd-3rd 2018 - Dallas TX

Freddie Mac announced this week that it sold via auction 3,247 delinquent non-performing loans from its mortgage investments portfolio. The loans, totaling $569 million and settling in December, are currently serviced by Specialized Loan Servicing LLC.  The loans were offered in three separate pools of which the winners were Balbec Capital, Lone Star and MCM Capital

Joining the podcast to discuss the non-performing loan market is Bob Repass, Managing Director at Colonial Funding Group.   Over the course of his career, Bob has purchased over 40,000 performing and non-performing mortgage loans totaling over $2.5 billion dollars in volume.  In addition to managing the firm, Bob is a Managing Partner for Colonial Capital Management, where he is the Chief Investment Officer of CCM’s Colonial Impact Fund II.

DDC Financial Group’s European Investment Summit podcast series.The Summit is being held on September 25th in London England.Listeners can use code NSCM30 for a 30% discount when registering.

Political upheaval in some Central and Eastern European counties have raised concerns in Europe about the CEE’s economic outlook.  However, the real estate market and other investment sectors remain strong with growth in capital deployed and favorable investment analysis.  It’s estimated that if interest rates stay relatively low, property and commercial investments in the CEE will remain attractive throughout 2019.

Joining the podcast to discuss investment opportunities in the CEE is Nicholas Tymoshchuk, CEO at UFuture Investment Group.  Nicholas is responsible for coordinating the group’s international activity and facilitating its transition into the industries of the future.

DDC European Investment Summit Series - Sept 25, 2018 - London England

According to recent reports, 56% of loans held be Ukrainian banks are non-performing. According to new rules, loans that are 90 days delinquent (30 days for banks) or loans that are unlikely that the debt can be collected without seizing the collateral are considered non-performing

In December, Moody's published an updated forecast for the country's banking sector. The agency says the proportion of problem loans in Ukraine will still be at 50 percent by the end of 2019.

Joining the podcast to discuss the Ukrainian NPL market is Krill Lukin, Director of Investment Banking and Head of the Financial Institutions group at Dragon Capital.  Dragon Capital is a group of companies in the field of investment and financial services offering a range of products in equities and fixed income sales, trading, asset management and research.

Welcome to Capital Markets Today and the DDC Financial Group’s European Investment Summit podcast series.The Summit is being held on September 25th in London England.Listeners can use code NSCM30 for a 30% discount when registering.

The methods for deal origination, sourcing and marketing have changed rapidly. Traditional methods for connecting investors with opportunities lack the same impact and scale required for today’s most promising deal opportunities.

Joining the podcast to discuss creative technology solutions for business networking and deal origination is Brian Pallas, CEO & Founder of Opportunity Network. 

Opportunity Network is the invitation-only platform that enables clients of the world’s premier banks to connect around business and investment deals. In just a few years, Opportunity Network has grown to include over 17,000 members from 122 countries and has hosted deal flow of over $145Bn.

At the MBA Secondary Marketing conference last week, it was apparent that investor appetite for non-QM loans is growing at a brisk pace. Qualified mortgage applicants are getting harder to find and the market potential for non-QM borrowers is only growing.

It’s estimated by many that the huge swath of would-be non-QM borrowers are likely the future of the mortgage industry.  Growth in non-QM lending is predicted to grow by over 400% next year.  It’s reasonable to associate increased non-QM lending with a stable NPL and RPL business for the foreseeable future.

Joining the podcast to discuss the non-performing asset space is Tom Constantine, Executive Vice President and Chief Credit Officer at BofI Federal Bank.  Prior to joining BofI in 2010, Tom was a senior examiner with the Office of Thrift Supervision.  BofI Federal Bank is unique in that it is a branchless bank with over 10 billion in assets.

Fannie Mae announced its latest sale of non-performing loans, including the company's thirteenth Community Impact Pool know as (CIP).  The CIP pool will consist of roughly 700 loans totaling $134 mm in UPB.  States include New Jersey, New York, Baltimore, Maryland, Cook County, Illinois, Miami and other Florida areas.

CIP pools are designed in to increase the inclusion of non-profits and minority & women owed business and have subtle requirements to increase the chance of home owner retention and neighborhood stabilization.

Joining the podcast to discuss the NPLs and distressed real estate is Marcos Morales, Executive Director of Hogar Hispano, Inc.  Marcos is very active in the non-profit NPL and real estate space and manages a portfoliol of over $30mm from recent acquisitions.

Fannie Mae announced its latest sale of non-performing loans, including the company's thirteenth Community Impact Pool.   The four larger pools include 10,300 loans totaling $1.7 billion in unpaid principal balance and the Community Impact Pool of 700 loans totaling $134 million in UPB.

Among other elements, terms of Fannie Mae's non-performing loan transactions require the buyer of the loans to pursue loss mitigation options that are sustainable for borrowers. In the event a foreclosure cannot be prevented, the owner of the loan must market the property to owner-occupants and non-profits exclusively before offering it to investors, similar to Fannie Mae's FirstLook® program.

Joining the podcast today to discuss NPL & real estate opportunities is Alex Goldovsky, Founder and CEO of ProTitle USA.  ProTitle is a Nationwide Residential and Commercial Title Search, Analysis and Due Diligence firm. 

There has been an uptick in subprime mortgage securitizations issued by private lenders.  In 2014, $100 million in mortgage-backed securities were issued and in just the first half of 2017, $2.6 billion in subprime mortgage-backed securities were issued.  With the increase in subprime origination, we will likely see an increase in defaults as the market evolves and normalizes.

Joining the podcast to discuss managing non-performing mortgage loans is Ron Brandenburg with Cal RE Fund Management.  Cal RE Fund is a real estate investment management company which has overseen and co-invested in the acquisition, restructuring and liquidation of $350 million of non-performing mortgages and REO since 2008.

According to the European Central Bank’s Chief supervisor, Daniele Nouy, Greek banks need to do more to reduce their very high stock of non-performing loans.  Nouy indicated that NPLs are the biggest challenge facing the banking sector in the country which is set to exit its third international bailout in August.  European Central Bank regulators are attempting to shrink NPLs by 40 percent by the end of 2019.  The reductions will be driven by restructurings, collections, write-offs and loan sales.