Mortgage news wrap up
Two Harbors taps into FHLB system; Anworth files 5M share repurchase authorization
In the final days of 2013, the mortgage and real estate markets are preparing for a year of change and transition.
HousingWire already sees companies on the move, tackling new changes and attempting new strategies.
Compass Point Research & Trading Group highlighted four movers and shakers this week.
One of them – REIT Two Harbors (TWO) – announced that a subsidiary obtained membership into the Federal Home Loan Bank system: the FHLB of Des Moines to be specific.
Compass Point says this move will give TWO access to FHLB funding, alleviating some market concerns over the potential for "declining liquidity in the repo market." With this change in effect, Compass Point says TWO is finding a way to distinguish itself from the rest of the mortgage REIT market.
Commercial lender Walker & Dunlop just closed on a $175 million senior secured loan term. The proceeds will be used to repay a term loan used to finance the company’s acquisition of CW.
Real estate investment trust NewCastle Investment Corp. (NCT) closed on $1.04 billion in senior living assets. Currently the REIT is transitioning its portfolio with the intent of focusing more on senior living properties. Currently, about 50% of its assets are within this category, Compass Point noted.
Meanwhile, New Residential just updated its prospectus for an upcoming common equity raise to support its purchase of NationStar (NSM) mortgage assets. The firm added Bank of America Merrill Lynch as an underwriter, Compass Point advised.
Finally, Anworth Mortgage authorized a repurchase of 5 million shares. Under a prior authorization, the company bought only 2.8 million shares between Oct. 1 and Dec. 20 at an average price of $4.42, the research firm said.