– Lone Star Funds (“Lone Star”) reached the final close of Lone Star Residential Mortgage Fund IV, L.P. (LSRMF IV) with total capital exceeding $1 billion, providing the ability to invest in over $10 billion of mortgage loans.
– LSRMF IV will leverage Lone Star’s expertise to programmatically invest in newly originated, performing U.S. non-agency mortgage loans.
– Non-agency borrowers typically include self-employed individuals and small business owners who lack access to traditional agency and government-backed mortgages but often have strong credit profiles.
– The fund’s initial close was in March 2025, and since then, approximately 33% of the fund’s capital has already been committed.
– Donald Quintin, CEO of Lone Star, highlighted the market need for private capital to fund mortgages outside government-backed agency lending.
– Lone Star has supported the U.S. housing market for over a decade by investing in mortgages outside agency lending rules.
– Lone Star’s standalone Residential Mortgage Fund series was launched in 2014.
– Since inception, Lone Star Funds have purchased over $20 billion in unpaid principal balances across 40,000+ individual mortgages nationwide.
– Lone Star developed the COLT securitization platform to finance investments, achieving milestones including:
– First securitization of newly originated non-agency loans post-financial crisis.
– First securitization of non-agency loans to receive a AAA rating post-financial crisis.
– To date, Lone Star has issued 68 COLT securitizations, with participation from 200+ bond investors.
– LSRMF IV will leverage Lone Star’s expertise to programmatically invest in newly originated, performing U.S. non-agency mortgage loans.
– Non-agency borrowers typically include self-employed individuals and small business owners who lack access to traditional agency and government-backed mortgages but often have strong credit profiles.
– The fund’s initial close was in March 2025, and since then, approximately 33% of the fund’s capital has already been committed.
– Donald Quintin, CEO of Lone Star, highlighted the market need for private capital to fund mortgages outside government-backed agency lending.
– Lone Star has supported the U.S. housing market for over a decade by investing in mortgages outside agency lending rules.
– Lone Star’s standalone Residential Mortgage Fund series was launched in 2014.
– Since inception, Lone Star Funds have purchased over $20 billion in unpaid principal balances across 40,000+ individual mortgages nationwide.
– Lone Star developed the COLT securitization platform to finance investments, achieving milestones including:
– First securitization of newly originated non-agency loans post-financial crisis.
– First securitization of non-agency loans to receive a AAA rating post-financial crisis.
– To date, Lone Star has issued 68 COLT securitizations, with participation from 200+ bond investors.