Need for Mortgage Insurance Among New Residential Construction Market Eliminated by BurkeyLoan Program from Carpe Aquam Capital

Today, Carpe Aquam Capital LLC announced it will launch a BurkeyLoan program for the new residential construction market. Expanding on its trademarked, The More Affordable Mortgage, the program will eliminate the need for mortgage insurance and dramatically increase buying power for consumers with good credit.

The new residential construction market is sensitive to changes that increase monthly mortgage payments. In the face of rising interest rates the combination of BurkeyLoan structure and elimination of the mortgage insurance premium can increase homeowner buying power upwards of 25% while maintaining and in some cases reducing lender/investor exposure. The program will be available to banks and their builder customers in the new construction market.

The BurkeyLoan is a method of separating the risk characteristics of a loan into transparent and distinguishable tiers based on LTV that investors buy. It differs from pooling, the current process of mortgage securitization, through which all loan tiers and risk are aggregated. The BurkeyLoan was originally developed as a residential mortgage loan solution that enabled lenders to refinance negative equity mortgages and reduce monthly payments, often by as much as fifty percent.

Carpe Aquam Capital LLC is a financial service company that is committed to transforming the mortgage market and building a clear path to a new housing finance system. The Company does not directly originate loans from consumers or non-risk intermediaries. The BurkeyLoan program is only available to state and federal governments, banks chartered by them and select financial institutions. BurkeyLoan and The More Affordable Mortgage are registered trademarks of Carpe Aquam Capital LLC.

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Owens Realty Mortgage, Inc. Announces $9.625 Million Capital Deployment

Owens Realty Mortgage, Inc. (NYSE MKT: ORM) announced today that it has closed a $9.625 million senior trust deed investment secured by an industrial office building located in the greater San Francisco Bay area. The investment is a five-year, interest-only loan with an interest rate of 10%, with a 6% pay rate for the first nine months and deferred interest due at maturity.

William Owens, the Chief Executive Officer, commented, "We are very pleased with this opportunity to provide a customized financing structure that addressed the unique requirements of the borrower and will make a valuable addition to our portfolio. This transaction is another example of our ability to provide lending solutions with speed and flexibility."

About Owens Realty Mortgage, Inc.

Owens Realty Mortgage, Inc., a Maryland corporation, is a real estate investment trust that invests in commercial real estate mortgage loans primarily in the Western U.S. The Company specializes in unconventional loans that require speed and flexibility. Owens Realty Mortgage, Inc., is headquartered in Walnut Creek, California, and is externally managed and advised by Owens Financial Group, Inc.

Additional information can be found on the Company's website at http://www.owensmortgage.com.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "target," "assume," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believe," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. These forward looking statements made in this release include, but may not be limited to the Company's expectations regarding the performance of its business and the yield on its investments.

Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these and other risk factors is contained in the Company's most recent filings with the Securities and Exchange Commission. All subsequent written and oral forward looking statements concerning the Company or matters attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.

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American Capital book value per share falls 12% as To Be Announced securities jettisoned

American Capital Agency is one of the biggest mortgage REITs in the United States

American Capital Agency is a diversified agency mortgage REIT that invests all across the agency mortgage-backed security (MBS) space. It invests in two basic types of MBS—agency pass-through securities, which are garden-variety To Be Announced mortgages, and seasoned agency MBS. It also invests in collateralized mortgage obligations, which are bonds backed by MBS that offer the investor specific exposure to prepayments, credit, et cetera. It purchases only agency mortgage-backed securities, which means that it buys only government-guaranteed (or -sponsored) securities—those issued by Fannie Mae, Freddie Mac, or Ginnie Mae. This means it takes no credit risk; all of its risk is interest rate risk. As a REIT, it must pay out 90% of its earnings as dividends or else it’s subject to corporate taxes.

(Read more: Mortgage REITs get crushed as rates increase)

Highlights of the quarter

Needless to say, all REITs have suffered over the last quarter, as the Fed has threatened to take away the quantitative easing (QE) punchbowl and rates have risen. The asset class has underperformed by a wide margin. Everyone expected book value per share to decline.

AGNC reported a loss of $2.37 per common share, which comprised income of $4.61 per share and $6.98 per share of unrealized losses on its mortgage portfolio. Book value per share decreased $3.42 (or 11.8%) to $25.51. After the close, the stock traded up from $21.85 to $23.00.

Its portfolio consists of $91.7 billion in mortgage-backed securities, of which $14.5 were To Be Announced (TBA) securities. Its leverage ratio was 8.5x. Looking closer at the internals, AGNC’s TBA portfolio dropped from $27.3 billion to $14.5 billion. This has pressured mortgage spreads and helped push rates higher. As this (and similar) selling abates, mortgage rates would be expected to fall again.

(Read more: Radar Logic futures curve predicts flat real estate prices until September 2014)

Read-across to the other mortgage REITs

AGNC’s 12% drop in book value was a pleasant surprise, and much lower than than the decline experienced by Hatteras (HTS). Given that Hatteras is an adjustable-rate agency REIT, you would have expected it to outperform American Capital in a declining bond market. Competitor Capstead (CMO) did weather the storm, but it was hiding in the short-duration agency ARM (adjustable-rate mortgage) space. Later this week, we’ll hear from Annaly (NLY), which is the mortgage REIT bellwether, and also from Redwood Trust (RWT). Annaly is more or less a comp to American Capital. Redwood will give us insight into origination patterns.

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Need for Mortgage Insurance Among New Residential Construction Market Eliminated by BurkeyLoan Program from Carpe Aquam Capital

 Today, Carpe Aquam Capital LLC announced it will launch a BurkeyLoan program for the new residential construction market. Expanding on its trademarked, The More Affordable Mortgage, the program will eliminate the need for mortgage insurance and dramatically increase buying power for consumers with good credit.

The new residential construction market is sensitive to changes that increase monthly mortgage payments. In the face of rising interest rates the combination of BurkeyLoan structure and elimination of the mortgage insurance premium can increase homeowner buying power upwards of 25% while maintaining and in some cases reducing lender/investor exposure. The program will be available to banks and their builder customers in the new construction market.

The BurkeyLoan is a method of separating the risk characteristics of a loan into transparent and distinguishable tiers based on LTV that investors buy. It differs from pooling, the current process of mortgage securitization, through which all loan tiers and risk are aggregated. The BurkeyLoan was originally developed as a residential mortgage loan solution that enabled lenders to refinance negative equity mortgages and reduce monthly payments, often by as much as fifty percent.

Carpe Aquam Capital LLC is a financial service company that is committed to transforming the mortgage market and building a clear path to a new housing finance system. The Company does not directly originate loans from consumers or non-risk intermediaries. The BurkeyLoan program is only available to state and federal governments, banks chartered by them and select financial institutions. BurkeyLoan and The More Affordable Mortgage are registered trademarks of Carpe Aquam Capital LLC.

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.