MountainView to Invest in Non-Prime Mortgages

 

Denver (Oct. 6, 2014) – MountainView Capital Group today announces its Peak Non-Prime Program targeting for purchase residential mortgage loans to borrowers that are creditworthy but not able to meet current prime mortgage requirements. The company is responding to demand in the origination market that is not being met by lenders who have significantly tightened underwriting requirements and are adversely affecting consumers who can in fact demonstrate the ability to repay their home loans.

The Peak Non-Prime Program will buy from traditional and specialty lenders in correspondent relationships that deliver high-quality, non-prime mortgages to MountainView Mortgage Opportunities Fund III. All loans acquired by the Fund through the program are intended to be held in portfolio for investment.

Among the program’s highlights are 30-year fixed-rate loans, borrower FICOs in the mid to low 600s, loan-to-value ratios up to 80 percent, loan amounts as high as $2.5 million, and loans to borrowers with bankruptcy or foreclosure at least 12 months in the past. Loans can also be made to borrowers with multiple investment properties, corporate borrowers, and foreign nationals.

“During the financial crisis, many borrowers experienced life event hardships from lost businesses, lost jobs, divorces and/or illnesses,” said Art Yeend, Managing Director and Head of Sales and Marketing at MountainView Capital Holdings. “As time has passed and the economy has improved, many of the affected borrowers have now recovered financially but do not qualify for conforming or jumbo prime loans. Additionally, due to losses suffered during the crisis, credit has been restricted and many self-employed borrowers who previously relied on alternative income documentation programs face similar credit qualification challenges.”

“Borrowers on the loans we purchase will be individuals that recently completed bankruptcy; lost homes to foreclosure, short sale, or deed in lieu; are real estate investors, corporate borrowers, or foreign nationals; or are non-W-2 employees,” added Yeend. “These borrowers will be prudently and responsibly underwritten and will meet all ability-to-repay guidelines, but our expanded underwriting criteria allows for multiple risk layering not acceptable to prime lenders.”

“Because we are investing for our own portfolio and not for resale to third-party investors, we are in a position to make rapid credit decisions,” said James Sherrill, Chief Investment Officer at MountainView Management Company, the manager of the MountainView Mortgage Opportunities Funds.

The program is expected to launch in late October and will include both fixed- and adjustable-rate mortgages. Underwriting guidelines and interest rates will vary by state.

 

About MountainView Capital Group

MountainView Capital Group, a wholly owned subsidiary of MountainView Capital Holdings, has provided advisory services on the trading of residential whole loans since 1993. The company also seeks these assets for the MountainView Mortgage Opportunities Funds. In 2013, the company reviewed 748 deals with total unpaid principal balance of $26.4 billion and closed 395 transactions involving $2.1 billion of UPB.

 

About MountainView Management Company

MountainView Management Company, a wholly owned subsidiary of MountainView Capital Holdings, is an asset manager specializing in residential mortgage-related investment strategies. The company is the manager of the MountainView Mortgage Opportunities Funds, which launched in 2008 and collectively purchased 2,334 whole loans with total unpaid principal balance of $479.3 million as of June 30, 2014. The company employs a disciplined bottom-up/loan-level approach to buying, managing and selling assets.

 

About MountainView Capital Holdings

For 25 years, Denver-based MountainView Capital Holdings has been focusing on the capital markets and financial advisory needs of the financial services industry while specializing in residential mortgage and fixed income assets. With expertise in sales and trading, analytics and asset management, MountainView is uniquely qualified to create value for clients in all market conditions, and the firm is continually building on a longstanding commitment to offer a broad range of services.

 

Media Contact

Troy Rusniak | 303-870-8235 or trusniak@mvcg.com