Home » News » Fix-and-Flip Mortgage Bonds

Are the big boys on Wall Street taking notice of home flippers?  That appears to be the case as Inman is reporting that Wall Street and some online lenders are bundling loans for home flippers into “fix-and-flip” mortgage bonds, which offer a new avenue for hedge funds, private equity firms and big players to invest in the housing market.  Mortgage bonds (aka mortgage-backed securities) allow large investors to buy mortgages in bulk, which potentially frees up the balance sheets of lenders so they can make more loans.  Hang on…this ought to be interesting.

“About one-third of flips were financed in 2016, the highest rate in eight years but still far below a 2005 peak of two-thirds, according to Attom Data Solutions. Meanwhile, the total sales volume of home flips hit a 10-year high of $ 50.4 billion, while the gross profit per flip reached its highest level since at least 2000, according to the data provider.”

Click here to read the full story on Inman.com.


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