Politics & MoneyInvestments

Fortress green lights more mortgage investment

Dallas-Fort Worth-based Nationstar Mortgage Holdings (NSM), one of the nation’s leading mortgage services, saw a 50% increase in its business in the third quarter.

This is one factor that leads Fortress Investment Group (FIG) third quarter results to highlight its dedication to investments in the mortgage markets, with more to come. 

Fortress co-founder Wes Edens said the firm boosted private equity funds largely because of dislocations in the mortgage market, proving to benefit the firm’s private equity fund positions.  

Nationstar raised plenty of capital in its failed bid for Residential Capital mortgage servicing rights. The results from Fortress follow an exceptional second quarter report from Nationstar. ().

Edens added the coming election is not giving them the jitters in terms of bets on the mortgage markets, and suggested where said, unused funding may be devoted.

“One of the things that will happen post election is that they’ll get focused on Fannie Mae and Freddie Mac, and the GSEs, HUD, etc.,” he said. “I think there’s likely to be substantial opportunities as a result of that, so financial services – both consumer business and residential business – have been great.” 

When it comes to rising capital there are more modified strategies on the mortgage servicing side. 

“People are very keen to make investments on things that they can see, where it’s tangible kind of factors that are influencing the outcomes,” Edens said. “In that respect, I think the capital raised environment is a good one, but it’s different from four or five years ago.” 

Fortress Investment Group Q312 profit rose 49% because of strong performances in its hedge, private equity funds and credit. The firm’s earnings were $64 million, or 12 cents a share, which was up from $43 million, or 8 cents a share a year prior.


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