Our Business / Credit Investing

Active Management Strategies Across the Spectrum of Residential Credit Markets

Palisades invests and manages assets in one of the largest sectors in the U.S. and around the globe with a multitude of portfolio construction and allocation strategies.

Highly Adaptable Strategies in Residential Whole Loan Credit

Robust Sourcing Channels

Loan Origination Partnerships
Lending Affiliates
Special Situations
Forced Sales

Market Exposure

Short Duration Loans
Intermediate Duration Loans

Deep Value-Orientation

Distressed Loans
Deliquent & Defaulted
Discount to Total Debt
Discount to Property Value

High Quality Income-Orientation

High Credit Quality Borrowers
Low Attachment to Value

Enhanced Yield

Niche & Emerging Sectors
Complexity Premiums

Residential Whole Loan Continuum

Performing Loans

Non-Qualified Mortgages

Loan that doesn’t meet the standards of a qualified mortgage as defined by the Dodd-Frank Act and uses non-traditional methods of income verification to help a borrower get approved for a home loan. These types of loans are generally for borrowers with unique income qualifying circumstances.

HELOC and Jr. Lien Loans

Home equity lines of credit are generally collateralized by the excess equity in the property and secured by a subordinate lien on the real estate. Open-end lines of credit allow the borrower to draw against the value of the property up to certain limits, while closed-end junior liens are fully funded with a fixed amortization scheduled at the time of origination.

Re-Performing Loans (“RPL”)

Loans that have been categorized as NPL and/or SPL, but through various means such as loan modification, repayment plans or reinstatements, the borrower has been able to demonstrate an ability to resume making regularly scheduled payments in accordance with the terms of the loan agreement.

Multi-Family & Mixed Use

Generally, loans secured by larger balance and/or 5+ unit residential projects that may have some commercial element (e.g. retail).

Scratch-n-Dent Loans (“S&D”)

Loans possessing underwriting, collateral, or other defects that disqualify them for sale through their intended distribution channel (e.g. conventional sale or agency securitization).

Reverse Mortgage Loans

Reverse mortgage loans allow homeowners to convert their home equity into cash income with no monthly mortgage payments.

Niche, Complex and/or Emerging Sectors

Property Rehab Loans

Loans made to experienced real estate developers seeking to acquire residential properties and executing value-add upgrades prior to sale with terms ranging between 6 and 12 months.

New Construction Loans

Loans made to professional builders seeking to construct residential structures from the ground-up with terms ranging between 9 and 24 months.

Cross Border Loans

Loans to U.S. borrowers secured by properties located in Mexico.

Home Equity Option Contracts

Product that allows homeowners to access home equity without incurring debt service obligations; only product that allows for investors to gain exposure to owner-occupied real estate.

Mortgage Servicing Rights

Or ‘excess servicing rights’, are negative duration cash flows derived from the income associated with servicing residential mortgage loans. Investments may provide a form of interest rate hedge to traditional fixed rate loan portfolios.

Distressed Loans