Group Seeks $1B To Buy, Recast, Refinance Delinquent Mortgage Debt

Bloomberg News reports:

• Lewis Ranieri, the mortgage bond pioneer trying to salvage a Texas bank crippled by faulty real estate loans, is seeking $1 billion in a separate venture to buy residential mortgages. Selene Residential Mortgage Opportunity Fund LP raised $151 million from investors in New York, Ohio and Pennsylvania as of April 15, according to a regulatory filing.

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• "Our plan is to raise $1 billion and buy delinquent mortgages that we will recast and refinance and try to keep the borrower in the house without a foreclosure," said David Creamer, a Selene managing partner and former GMAC executive, in an interview.

For more, see Ranieri, Ex-GMAC Execs Plan $1 Billion Home-Loan Fund.