Following a nearly one-year hiatus, Aames Investment Corp. will resume selling the majority of its mortgage originations to the secondary whole-loan market. The Los Angeles-based subprime mortgage lender last November reorganized under a REIT platform - a shift which required the accumulation of its now $4.2 billion investment portfolio in order to achieve its desired leverage.
"We are now selling the majority of production into the whole loan market," said Aames Chairman and CEO Jay Meyerson during the company's third quarter earnings call last week. Aames sold 55% of its production in the third quarter, Meyerson said, and he anticipates the sale of 70% to 80% of originations going forward. Aames sold $5.9 billion and $5.3 billion in 2004 and 2003, respectively, compared with about $1.6 billion as of the end of the third quarter.