Regulator subpoenas Apollo subsidiaries over low-income housing deals

Firms accused of proffering predatory “bond-for-title” agreements

New York /
May.May 17, 2016 08:30 AM

A handful of companies connected to Apollo Global Management’s real estate business received subpoenas from a New York state regulator as part of an investigation into allegedly predatory low-income home buying schemes.

The New York State Department of Financial Services subpoenaed ARM Manager LLC, an Apollo subsidiary, along with a real estate investment trust it oversees, Apollo Residential Mortgage.

Two other firms unconnected to Apollo also received subpoenas as part of the investigation — Battery Point Financial and New York Mortgage Trust.

The regulator is looking into so-called “bond-for-title” financing agreements made with home buyers by a residential REIT connected with Apollo, Bloomberg reported. The deals, often considered predatory by housing advocates and investors, require buyers to make regular principal and interest payments, but don’t grant rights of ownership until the entire purchase price is paid. In many cases, buyers can forfeit all money and interest in the property if their monthly payments are more than 30 days late.

The Real Deal profiled Apollo in its May issue, chronicling its recent push to become a major real estate player. [Bloomberg]Ariel Stulberg


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
A&E Real Estate CEO James Patchett (Courtesy of A&E Real Estate)
Former EDC head James Patchett named CEO of A&E Real Estate
Former EDC head James Patchett named CEO of A&E Real Estate
TIG founding principal Elliott Ingerman and the Textile Building at 295 Fifth Avenue (LinkedIn, Google Maps)
Fifth Avenue’s Textile Building to get $350M makeover
Fifth Avenue’s Textile Building to get $350M makeover
Fifth Wall’s Brendan Wallace (right) and Andriy Mykhaylovskyy (Facebook/Fifth Wall; iStock)
Fifth Wall launches third SPAC to raise $250M
Fifth Wall launches third SPAC to raise $250M
Extell's Gary Barnett and One57 (Getty)
One57 is 90% sold: Extell announces Q1 sales
One57 is 90% sold: Extell announces Q1 sales
The Real Deal's E.B. Solomont
CoStar hits it Home, office-startups make bank
CoStar hits it Home, office-startups make bank
arrow_forward_ios

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

Loading...