Commercial -- Next Up at Countrywide: Coastal Capital Team Hired to Build Conduit Lending Business

By Shenn, Jody | American Banker, April 2, 2004 | Go to article overview

Commercial -- Next Up at Countrywide: Coastal Capital Team Hired to Build Conduit Lending Business


Shenn, Jody, American Banker


Most of Countrywide Financial Corp.'s efforts to diversify over the years have leveraged its powerhouse position and expertise in single-family home lending.

Until recently its investment banking unit stuck to home mortgage-related activities, such as brokering servicing rights and underwriting and trading mortgage-backed securities. Most of its insurance products are house-related, including captive mortgage reinsurance and lender-placed homeowner's policies.

And its bank grew fast by taking deposits of funds held in escrow for servicing customers.

Now the Calabasas, Calif., company is trying what could be a bigger stretch: financing commercial real estate.

On Thursday it hired the principals of Coastal Capital Partners LLC of Sausalito. The team will work to build a commercial mortgage origination and securitization business.

Countrywide will engage in conduit lending, in which loans are originated with an eye toward quick securitization -- not to be held on its balance sheet. One similarity between conduit lending and Countrywide's traditional domain is that they are both trading businesses that rely on the secondary market.

In an interview Thursday, Ron Kripalani, the chief executive of the new division's immediate parent, Countrywide Capital Markets Inc., said conduit lending is a "way of leveraging our existing [securities] distribution network," as well as diversifying.

Countrywide's after-tax earnings nearly tripled last year, to $2.4 billion. But the sharp drop in single-family originations nearly all forecasters are predicting as refinancings dry up would make things more difficult for the company.

The commercial real estate group has a staff of 17 but plans to have as many as 40 workers by yearend. It will originate loans nationwide through offices in New York, Chicago, California, and Toledo, Ohio, Mr. Kripalani said.

He called multifamily lending a "logical extension" for the company but said it was not limiting itself to financing apartments.

According to a Mortgage Bankers Association survey, multifamily lending made up 43% of the commercial mortgage originations reported last year. Overall commercial originations surged 34%, according to the survey.

Mr. Kripalani would not guess at how much lending the group would do this year. It is focusing on the long term, he said. "We're going to do this methodically, like we've done with every business."

His unit also includes Countrywide Securities Corp., which was named in January to the New York Fed's list of primary dealers in U.S. Treasury bonds.

Before Countrywide hired the principals, Coastal provided a range of origination, evaluation, and structuring advisory services for borrowers, lenders, issuers, and investors. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Commercial -- Next Up at Countrywide: Coastal Capital Team Hired to Build Conduit Lending Business
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.