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AmNet reports March figures
Bear Stearns breaks into mortgagesmortgagepress.comresidential mortgages, non-conforming, sub-prime mortgages
Bear Stearns Companies has begun making home loans to consumers
to generate mortgages to sell to investors in the mortgage market.
The brokerage is setting up Bear Stearns Residential Mortgage
Corporation to underwrite the loans. The new company will initially
focus on underwriting non-conforming loans, including loans with
large balances, alt-A loans that require less documentation, and
sub-prime lending. The New York-based investment bank will pool
together the mortgages it underwrites and sell them as securities
to institutional investors.
The average loan size will be in the $225,000-$250,000 range and
as large as $3 million. Bear Stearns will lend via mortgage
brokers. Among prime loans, Bear Stearns will offer $10,000-$25,000
home equity loans for now. While the bank has underwritten
mortgages in the past under a private label, most of the loans it
has pulled together into mortgage-backed securities were purchased
in blocks of $100 million to several billion dollars in size.
Based in New York, Bear Stearns Companies is a global securities
firm. For more information, call (888) 473-3819 or visit www.bearstearns.com.
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