Shellpoint Partners LLC, the housing lender backed by mortgage-bond pioneer Lewis Ranieri, sold its first securities tied to home loans without government backing after restructuring the debt to lure investors.
The government’s deal with banks over their foreclosure practices after 16 months of investigations is cheap for the loan servicers while costly for bond investors including pension funds, according to Pacific Investment Management Co.’s Scott Simon.
The U.S. homeownership rate may fall two percentage points to 64 percent, below historic norms, amid about six million additional foreclosures and tight lending standards, according to Pacific Investment Management Co.’s Scott Simon.
The two-bedroom Denver row house that Kyle and Jennifer Zinth bought in 2005 is a tight fit now that they have an 18-month-old son, Max, and a coonhound named Beauregard. They plan to put it up for sale next month, hoping to at least break even so they can buy a larger home.
EverBank Financial Corp. sold securities tied to $307 million of new U.S. home loans without government backing, a day after a deal by JPMorgan Chase & Co., as issuance in the so-called non-agency market accelerates.