Strength in numbers
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. Tom Millon, the founder and president of CMC, said the company will use Ross’s investment to enhanced liquidity and agility for its investors. HousingWire sat down with him and the leveraged buyout king to discuss why this investment makes sense and where it may go next. The answers will surprise you.