Two companies are providing online auction houses for individual mortgage notes, while bids are being accepted offline on nearly $0.5 billion in loan portfolios secured by properties in several states. Fannie Mae adjusted its pricing on condominiums, and one group is calling for loan limits on mortgages acquired by Fannie and its secondary cousin Freddie Mac to be lifted to $1 million.
Bayview Asset Management LLC is marketing a $52 million first-lien portfolio, according to a May 27 news release. The portfolio includes low loan-to-value commercial loans originated in conjunction with second-lien loans under the Small Business Association’s 504 Lending Program. The 71 loans are secured by properties in 15 states.
“As part of the American Recovery and Reinvestment Act aimed at reviving the secondary market and improving liquidity, the Treasury Department and the SBA plan to take several actions intended to stimulate the secondary market for first lien loans originated under the SBA 504 program,” Bayview explained. “These actions include a process for private sector entities to apply for federal guarantees on pools of first lien loans originated under the SBA 504 program.”
Indicative bids are being accepted until June 18, Bayview said.
A $441 million portfolio of 90 loans is up for bids at Mission Capital Advisors LLC, the New York-based company said last month. The loans are secured by residential and commercial properties in multiple states, including 27 Arizona loans and 15 Florida loans.
Mortgages secured by condominiums or cooperative properties are no longer subject to an 0.75 percent loan-level price adjustment at Fannie Mae, according to Announcement 09-18 on June 8. The LLPA is also being canceled on manufactured homes that are in cooperative or condominium projects.
The change is effective for whole loans purchased on or after Aug. 1 and for loans delivered for securitizations with issuance dates on or after Aug. 1.
A June 1 letter from the Consumer Mortgage Coalition to Federal Housing Finance Agency General Counsel Alfred M. Pollard called for a temporary increase in the conforming limit to $1 million for properties in all cities. The move would reportedly increase market liquidity.
Miller Tabak Roberts Securities LLC launched an asset- and mortgage-backed securities department, a May 18 statement said. The initial focus of the department will be secondary sales and trading of non-agency prime, Alt-A and subprime residential MBS as well as other ABS. An eventual expansion to collateralized debt obligations is expected.
Prospects searching for notes to acquire at BigBidder.com will now have access to more details about the property. The online auction platform announced last week that it has partnered with IntelliReal to provide an automated valuation model. In addition, an alliance with BrokerPriceOpinion.com will give prospects access to broker price opinions, while an arrangement with LSI will give customers access to a comprehensive lien search.
BigBidder, a subsidiary of the LFC Group of Companies, only announced the launch of its operations on May 28.
Another online marketplace for mortgage note trading, LoanMarket.net, announced on June 8 a partnership with First American Title Insurance Co. to provide an integrated title insurance and settlement services.
Patrick Greene was hired as a senior analyst at Secondary Interactive, which says it is a “secondary marketing risk management and best execution firm,” a recent press release said.
