Question: In a short sale where the financing was insured
by the FHA is the borrower first required to miss three payments? This was the
advice given by a lender before it would allow a short sale to go forward.
Answer: We sent this question over to HUD and received
“The information is incorrect,” HUD told OurBroker.com. “Under the code of
federal regulations 24 CFR 203.370 (c) 2 and section 204 of the National Housing
Act the loan must be in default at the time the short sale transaction closes
for HUD to legally pay a claim (31+ days). This does not preclude the servicer
from processing the short sale request with the loan current if the borrower and
property meet all the short sale requirements and close the transaction with the
loan one month delinquent.”
Hedge funds are private, actively managed investment funds. They invest in a diverse range of markets, investment instruments, and strategies and are subject to the regulatory restrictions of their country. U.S. regulations limit hedge fund participation to certain classes of accredited investors.
Hedge funds are often open-ended, and allow additions or withdrawals by their investors. A hedge fund's value is calculated as a share of the fund's net asset value, meaning that increases and decreases in the value of the fund's investment assets (and fund expenses) are directly reflected in the amount an investor can later withdraw.
Most hedge fund investment strategies aim to achieve a positive return on investment regardless of whether markets are rising or falling. Hedge fund managers typically invest money of their own in the fund they manage, which serves to align their own interests with those of the investors in the fund. A hedge fund typically pays its investment manager a management fee, which is a percentage of the assets of the fund, and a performance fee if the fund's net asset value increases during the year. Some hedge funds have a net asset value of several billion dollars. As of 2009, hedge funds represented 1.1% of the total funds and assets held by financial institutions. As of April 2012, the estimated size of the global hedge fund industry was US$2.13 trillion.
Because hedge funds are not sold to the general public or retail investors, the funds and their managers have historically been exempt from some of the regulation that governs other funds and investment managers with regard to how the fund may be structured and how strategies and techniques are employed. Regulations passed in the United States and Europe after the 2008 credit crisis were intended to increase government oversight of hedge funds and eliminate certain regulatory gaps.
BOSTON, April 8, 2013 (GLOBE NEWSWIRE) -- NewStar Financial Inc. (Nasdaq:NEWS) announced today that it has formed a new managed credit fund, NewStar Arlington Fund LLC (the "Fund" or "Arlington"), in partnership with an institutional investor to co-invest in middle market commercial loans originated by NewStar. The Fund represents the next step in the expansion of the Company's asset management platform and is expected to add approximately $300 million to its assets under management (AUM). The Fund also provides important strategic benefits, including additional lending capacity to lead transactions for clients.
As part of its investment strategy, NewStar intends to enhance returns to Fund investors by employing leverage through warehouse and securitization financing. Upon its launch, the Fund formed and capitalized a new special-purpose investment subsidiary, NewStar Arlington Funding, LLC, which then entered into a five-year, $175 million credit facility with lenders including Wells Fargo Bank N.A. as a Class A lender and NewStar as Class B lender. The Fund expects to use the proceeds of the warehouse financing to partially fund investments in a portfolio of eligible senior secured middle market loans. The Fund purchased a portfolio of senior secured loans with total credit commitments of approximately $30 million that were originated by NewStar in the fourth quarter, which were held for sale in anticipation of the formation of the Fund.
As Managing Member of the Fund and its Investment Manager, NewStar retains full discretion over the Fund's investment decisions subject to usual and customary limitations and will earn management fees as compensation for its services.
Trevana Properties is a placement company working with a variety of hedge funds, REIT's, commercial banks, specialty boutique lenders, private investors and other funding sources not widely known to the general public.