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Loanstar Mortgage

Package Home Loan Star Ratings Revealed

CANSTAR unveils the latest star ratings for Australian package home loans on channel 7's Today Tonight.

Commerce acquires LoanStar to expand in underserved housing markets

&Quot;We look forward to connecting Commerce with banking partners and others who can help provide the financing and develop the products needed to better serve these underbanked populations," she said.

The acquisition marks significant progress toward Commerce's goal of expanding access to capital in the Northwest and Texas regions, according to Steven Sugarman, executive chairman of The Capital Corps and Commerce.

"I am thrilled to partner with LoanStar and its talented professionals for this strategic transaction. Our combined organization will have a strong balance sheet, meaningful scale, and the benefits associated with our certification as a [community development financial institution] by the United States Department of Treasury," said Sugarman.

"As Commerce rolls out its proprietary, nontraditional prime mortgage products later this year, our retail loan officers will have a compelling opportunity to meaningfully grow their originations. Commerce's expansion throughout the Northwest and Texas has been a top priority," he continued.

Q&A: Vulture funds waiting in the wings to snap up poor-performing loans

By Joe Leogue

Why are the banks selling off loans?

Banks are struggling with non-performing loans, particularly mortgages. These are debts that are in arrears and in some cases are loans where those in debt have not engaged with the bank to restructure their payments.

The more of these types of loans on a bank’s books, the more risk that lender is exposed to in the long run. The European Central Bank wants to avoid widespread risk, and so is looking to the banks to clear their books of non-performing loans. Which is where investment or “vulture” funds come in.

What is a vulture fund?

These are private equity firms and hedge funds that look to snap up non-performing or distressed loans off the banks at discounted prices, and then turn them around for a profit.

Even though they buy at a discount, these vulture funds are attractive prospects for the banks as they can clear non-performing loans off their books. There’s also the added bonus, from the bank’s point of view, of not having to give individual writedowns to distressed mortgages while expecting those who can afford to meet the terms of their loans to continue to do so in good faith.