Wilbur Ross’s private equity investment firm is investing up to $100 million in mortgage originator Capital Markets Cooperative. WL Ross & Co is already the majority owner of American Home Mortgage Servicing with more than $85 billion of primarily subprime mortgages. CMC originates more than $25 billion in mortgages annually and is also a mortgage capital markets firm. The CMC trading desk and cooperative services operations facilitate the sale of mortgages to the secondary mortgage market. CMC will use the investment to enhanced liquidity and agility for its investors, the firm said in a statement. “The superior mortgage origination quality of the CMC client base and the significant resources and market expertise of WL Ross create a winning combination that will be tough to beat,” explained Tom Millon, CEO, President, and founder of CMC. Mark Gorman and Lindi Sabloff from Hidden River Capital acted as exclusive financial advisor to CMC on this transaction. Write to Jacob Gaffney.
Wilbur Ross to invest up to $100 million in Capital Markets Cooperative
September 23, 2010, 9:58am
Jacob Gaffney is formerly Editor-in-Chief of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s).see full bio
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Jacob Gaffney is formerly Editor-in-Chief of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s).see full bio
