Fortress Announces Agreement to Sell Mortgage Loans and Servicer, Foundation Home Loans


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LONDON–(BUSINESS WIRE) – Fortress Investment Group LLC (“Fortress”) today announced an agreement to sell Foundation Home Loans, the UK mortgage lender and service provider, to Athene Holding Ltd. , an industry leading financial services company focused on retirement solutions.

Foundation Home Loans (the trademark of Paratus AMC Limited) is one of the most recognizable names in the European mortgage lending, servicing and securitization market. As a GMAC-RFC, the company grew to the 10ththe UK’s largest residential mortgage originator, a leading UK RMBS issuer and a key contributor to the creation of the specialty loan market.

Funds managed by Fortress affiliates acquired GMAC-RFC from GMAC in October 2010 as the company and its loan portfolio faced significant challenges following the global financial crisis. The management appointed by Fortress renamed the company and immediately set about transforming the company into a focused and highly effective mortgage service provider as many borrowers struggled to get their homes after the global financial crisis. With this strong focus on customer results and providing solutions to distressed borrowers, the company saw dramatic improvements in loan performance and a significant decrease in arrears on a £ 4 billion mortgage loan portfolio.

Under the leadership of Fortress, the company returned to profitability in 2011, and in 2015 the company re-launched mortgage loans under the Foundation Home Loans brand, which has established itself as one of the top three mortgage loan specialists and a growing mortgage loan provider specializing in specialty mortgages to private borrowers. Since resuming lending, Foundation Home Loans has taken out over £ 2.5 billion in mortgage loans, of which over £ 500 million in the first half of this year.

Foundation Home Loans developed a strong presence in the capital markets even under Fortress, with cumulative RMBS issues of more than 3 billion. By June 2021, Foundation Home Loans held more than 3 billion mortgage loans.

During almost 11 years in the possession of FIG, the number of employees has more than doubled to almost 300 employees. The company has maintained its headquarters in Bracknell, Berkshire, where it was founded.

Hans Geberbauer, CEO of the Home Loans Foundation and employee of the company since 2002: “Since acquiring the company in 2010, Fortress has been an incredibly supportive owner, leading the company out of the great financial crisis and investing expertise and capital to build a leading specialist mortgage lender. Fortress has continually reaffirmed its commitment to our business, our vision and the customers we serve, investing in the growth of our business despite the uncertainty caused by the Brexit referendum and the COVID-19 pandemic. You have created a great foundation for the company to thrive under its new potential shareholder. ”

The acquisition is still subject to approval by the Financial Conduct Authority.

About fortress

Founded in 1998, Fortress has $ 53.1 billion in assets under management as of March 31, 2021 for approximately 1,800 institutional and retail clients worldwide across a range of credit and real estate, private equity and permanent investment strategies.

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