by Baz Hiralal
New York-based NewOak Capital LLC launched a non-QM (nonqualified mortgage) support services platform as part of its credit services division, which is led by partner Chad Burhance. Prior to joining the firm in 2010, he was head of risk and analytics for State Street Corp. and its hedge fund administration unit.
When asked what trend or regulatory changes promoted the firm to launch this platform now, a representative responded, "Implementation of Dodd-Frank and Qualified Mortgage rules in 2014, as well as collective effort to restart securitization of non-QM mortgages requires the banks and mortgage finance companies to ensure full documentation of the ability-to-repay by borrowers and compliance with all the state and federal laws. Reliable third-parties are required to re-underwrite these loans to satisfy investors and reduce future legal risks. Increasing number of nonbank finance and funds are evaluating the non-QM space."
In a statement, Burhance said, "The reality is that there is a very large audience of attractive borrowers who are not able to obtain a new mortgage or refinance an existing one. Whether it's the loan amount, blemishes on the borrower's credit or a change in employment, these factors as well as others can adversely affect borrowers. However, many originators and investors deem these characteristics as both acceptable and desirable risks, but their existing operations are not configured in accordance with many of the new regulations, including the ability-to-repay analysis."
NewOak also opened offices in Atlanta, Boston and Irvine, Calif., with a focus on expanding its specialist team in the mortgage and consumer credit services fields.
Asset manager M&G Investments named John Mayhew as head of infrastructure finance, institutional fixed income. He has worked at worked at Morgan Grenfell, Deutsche Bank AG and was head of infrastructure finance at Barclays Capital. Most recently, Mayhew founded London-based Erias Finance Ltd. in 2009.
Middle-market investment bank Dresner Partners hired Patrick Cavanagh as a managing director to lead its consumer products team. Cavanagh joined the firm from Scott Macon Ltd., where he worked for more than seven years on middle market transactions that included the food, beverage, automotive, business services, chemical, healthcare, and media industries. Prior to that, he was a managing director at ARG Advisors LLC and a vice president at Valufinder Group Inc. Cavanagh was also vice president, mergers and acquisitions at Citigroup Capital Strategies, and worked for Nestle Waters North America and KPMG Peat Marwick.
NewOak Capital LLC launched a nonqualified mortgage support services platform as part of its credit services division, which is led by partner Chad Burhance.