Star bond trader becomes subprime lender

TRD New York /
Jun.June 24, 2011 12:27 PM

One-time Salomon Brothers star bond trader and Renieri Partners founder Lewis Ranieri is revisiting subprime lending, according to the Wall Street Journal. 

As lawsuits against Wall Street firms continue to make their way through the courts, Ranieri believes the time is right for nontraditional lenders to enter the market. Bank lending standards have gone from one extreme to the other, he said, from too loose, to too tight. The limited availability of mortgages for the average borrower has provided that opportunity for his recently formed company, New York City-based lender Shellpoint Partners.

“The pendulum has swung too far in the other direction,” Ranieri said. “Mortgage payments are being precluded from home ownership due to banks’ rigid criteria.”

Kenneth Rosen, chairman of the Fisher Center for Real Estate & Urban Economics at University of California and a former colleague of Ranieri, agrees with the strategy. “What Ranieri is doing is exactly what is needed in the market today and serves an important policy need. We should be loosening credit at the bottom of the markets.” [WSJ]


Related Articles

arrow_forward_ios
According to the report, purchase applications are down while refinancing is up (iStock)

Applications for mortgages to buy homes drop

Applications for mortgages to buy homes drop
Darren King (Credit: iStock)

Multifamily lender saw delinquent loans double in Q1

Multifamily lender saw delinquent loans double in Q1
Ira Zlotowiz, Founder & President of Eastern Union; Simon Ziff, president of Ackman-Ziff; Dustin Stolly, Vice Chairman, Co-Head of Capital Markets Debt and Structured Finance and Newmark Knight Frank

Tune in for the latest in commercial lending on tonight’s TRD Talks Live

Tune in for the latest in commercial lending on tonight’s TRD Talks Live
Heavy machinery left on the street after construction halts in order to comply with CDC guidelines due to the COVID19 outbreak. (Photo by Erik McGregor/LightRocket via Getty Images)

New York’s construction ban puts some lenders at higher risk

New York’s construction ban puts some lenders at higher risk
Coronavirus chaos is driving lenders to safe, stable projects such as 445 West 35th Street (Credit: iStock and Google Maps)

Coronavirus chaos driving lenders to safer projects amid low interest rates

Coronavirus chaos driving lenders to safer projects amid low interest rates
From left: Will Anderson and Etienne Uzac with California and New York skylines (Credit: LinkedIn)

Ex-media chiefs admit to buying NY, Cali real estate with stolen millions from lenders

Ex-media chiefs admit to buying NY, Cali real estate with stolen millions from lenders
“No one should be lending for 30 years in most of Florida,” financial climate analyst warns

“No one should be lending for 30 years in most of Florida,” financial climate analyst warns

“No one should be lending for 30 years in most of Florida,” financial climate analyst warns
Battle of the banks: These were NYC’s most active luxury home lenders in 2018

Battle of the banks: These were NYC’s most active luxury home lenders in 2018

Battle of the banks: These were NYC’s most active luxury home lenders in 2018
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...