Fortress Investment Group Sells Home Loans From Athene Foundation


Fortress Investment Group plans to sell Athene Holding Ltd. a British housing finance specialist who has reinvented himself since the Great Recession.

Neither company has disclosed the terms of sale of Foundation Home Loans, a trademark of Paratus AMC Ltd. FHL is the successor to GMAC-RFC, which was ranked among the top 10 companies in the UK. and the USA pre-crisis. Apollo Global Management will oversee Athene’s investment in FHL if the deal receives the necessary regulatory approvals.

A proposed acquisition that came just days after U.S. digital lender announced plans to buy London online mortgage broker Trussle Lab, highlights the growth of the UK mortgage market. The volume of loans increased due to temporary tax break when buying real estate.

Following the close of the acquisition, Apollo Global Management “will help scale the FHL platform, positioning it as a leading developer in the UK lease-to-buy market,” said Kevin Crowe, AGM partner, in a press release. Apollo will manage investments for Athene, a retirement services company.

The loans will be added to Athene’s housing portfolio of mortgages and structured securities, which stood at more than $ 13 billion in net invested assets as of March 31. FHL had a portfolio of £ 3 billion ($ 4 billion +) held for purchase to rent (investor) owner-occupied loans and mortgages as of June.

The funds operated by Fortress subsidiaries originally acquired the UK arm of GMAC-RFC (short for General Mortgage Acceptance Corp. – Residential Funding Corp.) in 2010 following the problems the company faced in the wake of the crisis. Since then, it has processed and substantially reduced late payments on its legacy UK mortgage portfolio by £ 4bn ($ 5.5bn).

By 2011, the British company was back to profitability and resumed operations as FHL in 2015. As of June, it has serviced loans in the amount of £ 930 million (over $ 1 billion). FHL also issued £ 3 billion (over US $ 4 billion) mortgage-backed securities, including the securitization of legacy portfolios acquired from third parties. Fortress has doubled the FHL staff to 300.

“Fortress has consistently reaffirmed its commitment to our business … by investing in the growth of our company, despite the uncertainty created by Brexit referendum and COVID-19 pandemic“Said Hans Geberbauer, CEO of Foundation Home Loans, in a press release. “They have created an excellent foundation for the company to flourish with a new potential shareholder.”

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