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Mortgage Loan Portfolio Plans Justified Move to Larger Headquarters
Bucking Home Equity Loss Trend, Vertical Capital’s Bayard Closser Expands Firm’s Capabilities
While depressed property values continue to bedevil the financial markets, Mr. Closser said his firm is looking to attract new investment dollars into mortgage loan portfolios that, through Vertical Recovery Management’s servicing capabilities, may have informational advantages over other property-backed investments – such as Residential Mortgage-Backed Securities (RMBS).
“As servicing agent, we know a great deal about every single mortgage in our portfolios,”
By packaging together whole mortgage loans that banks have been selling off to raise liquidity, Mr. Closser said he hopes to attract investors seeking higher income potential than available through conventional sources. To bolster that strategy, last month Vertical Capital Asset Management (the “Adviser”) announced the launch of the Vertical Capital Income Fund, a closed-end interval fund, which invests primarily in residential loans that are secured by first mortgages or deeds of trust
However, these notes are typically sold in groups which are difficult to value. Up to 10% of the loans in the group or package may be delinquent or in default. The Fund will not purchase loans that currently are in foreclosure;
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