Deutsche Bank and the Hispanic National Mortgage Association launched a joint venture that will finance mortgages largely to Hispanic immigrant borrowers who, for various reasons, have limited traditional credit profiles.

The joint venture, HNMA Funding Co., is a correspondent investor backed by a $500 million credit facility, enabling it to buy that amount of mortgages at a time. If all goes well, the venture will finance $1 billion of mortgages in its first year, and exceed $5 billion in three to five years. The loans will very likely be securitized, Leonardo Simpser, CEO of Hispanic National Mortgage Association, said.

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