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Revolve Capital Announces Purchase of $29.3M Non-Performing Residential Mortgage Portfolio

The portfolio was brokered by one of the top financial institutions in the nation.

IRVINE, Calif., Aug. 11, 2021 /PRNewswire/ — Revolve Capital, a private equity firm that focuses on purchasing, managing, and selling distressed real estate notes, has announced the purchase of a $29.3M 1st lien non-performing residential mortgage portfolio. The portfolio was acquired from a Tier 1 Real Estate Fund and brokered by one of the top U.S. banks. The delinquent mortgages are located in 20 different states throughout the U.S., spanning from Washington State, to New York, and Florida.

Many financial indicators point to a pull back in home values and an increase in home inventory.

According to Revolve Capital CEO Chaz Guinn, the majority of the mortgages are greater than three years delinquent on payments, and some are as many as five years delinquent. The average home value is $390,000, while the average mortgage balance is $350,000.

As unemployment numbers wane throughout the country, Guinn notes, “Many of these mortgages fell delinquent pre-COVID, are owner-occupied, and the chance for a loan modification remains high.”

However, 25% of the portfolio is confirmed vacant, and since July 31st, 2021 the state level foreclosure moratorium holds were de-activated. As a result, many predict an uptick in vacant-home foreclosures in the coming months.

Revolve Capital has surpassed $100M in mortgage acquisitions since its inception in 2018. Guinn, having been in the delinquent residential mortgage space since fall 2007, and having underwritten and acquired over $1B in 1st lien assets, believes another delinquent mortgage wave is on the horizon:

“By late 2021 and into 2022 we will see a rise in active foreclosures which will inevitably affect home prices throughout major cities across the U.S. Given inflation is on the rise, and the job numbers sit well below March of 2020, many financial indicators point to a pull back in home values and an increase in home inventory.”

About the Company

Revolve Capital Group is a privately held real estate investment firm that specializes in the acquisition, management, and sale of distressed mortgage notes. The primary objective of Revolve Capital is to invest in high-quality, well maintained, higher-valued non-performing loans secured by a first lien mortgage or deed of trust on residential real property. Having acquired over $850M directly from Tier 1 banks, investment banks, large real estate funds, GSE’s and servicers, the firm’s business objective is to be a timely and relevant solution to the continued residential housing crisis.

 

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