Peak Capital Group (www.peakcapgroup.com), an investment firm created as a partnership between the principals of Peak Financial Partners, Inc. (www.peakfp.com) and a New York-based private investment group backed by $12 billion in assets, is working to assist lenders nationwide in light of the recent distressed subprime market. The joint venture specializes in buying non-performing
loans (both residential and commercial) and providing bridge loans for residential, commercial, and specialty properties. The firm has been successful in working with lenders and mortgage brokers nationwide.

According to Peak Capital Group directors, the fund will be looking for the appropriate purchase or partnership with nationwide lenders that historically have exhibited healthy operations, but are currently in need of cash. When asked about the company’s current focus, Gil Priel, a principal and managing director of the firm, said, “Currently, we are in a joint venture partnership with an entity that provides us
with significant purchasing power in the market. We are looking for any opportunity that arises from the new market created. We are here with unlimited resources to buy companies, whole portfolios or develop creative opportunities for distressed lenders.”

Eli Tene, a second principal and director, added, “Our lending ability today is amazing for most of the commercial products without dollar limits. Also, we are specializing in the acquisition of non-performing notes and portfolios, as well as industrial, commercial, and residential properties. In addition, we can offer blended rate financing to be combined with other financing for all types of properties.
Because of a number of other complementary services, we are well equipped to handle all types of transactions and deal with any complications that may arise throughout the lending process.”

Currently, subprime lenders have suffered from rising defaults. More than 20 have ceased lending or gone bankrupt in the past year. The most recent news relates to Countrywide Financial Corp., the largest U.S. mortgage lender. On March 9, 2007, Countrywide told its brokers to stop offering borrowers the option of no-money-down home loans. But as Countrywide’s subprime volume makes up less than roughly 10 percent of their total originations, the company has not been forced to sell loans into an unstable market. Other companies have not been so lucky however.

On March 8, 2007, New Century Financial Corp., the nation’s largest independent subprime lender, stopped accepting loan applications after at least five creditors pulled company financing. Several lenders have refused to allow New Century to tap other credit lines, therefore prolonging the company’s inability to deliver loanspromised to customers. Problems like these make Peak Capital Group a valuable solution when distressed lending institutions need to clean up their non-performing portfolios and raise additional liquidity to remain solvent.

Earlier in March, another large subprime lender, Santa Monica, California's Fremont General Corp., stopped making loans, and put many of its 2,400 subprime workers on paid leave. Elsewhere across the industry, more than two dozen mortgage companies have gone bankrupt, closed operations or sought buyers since the start of 2006, according to data compiled by Bloomberg. As companies continue to struggle and look towards disposal of subprime units, Peak Capital Group offers a feasible distribution channel to expedite the process.

After loans are sold in the secondary market, investors often have the right to demand that originators repurchase them if they go into early payment default within 30-180 days or less, depending on the original agreement. As many investors continue to exercise rights to sell back non-performing loans, companies have become inundated with sub-standard assets and cash depletion. Peak Capital Group is in a unique position to aggressively commit additional cash to soured operations, providing new lending capacity to mortgage originators. The firm is dedicated to understanding ways that it can help struggling lenders, and hopes that the timeliness of their operations will have a positive impact on a disheartened industry.

For more information contact:
Gil Priel
info@peakcapgroup.com
818-591-3300