Caliber experienced rapid expansion in recent years, both from originating more mortgages and buying servicing rights from other mortgage servicers. Since 2011, its portfolio has increased from $6.4 billion to $71 billion.
Part of that exponential growth is due to Caliber becoming a subsidiary of Loan Star Funds, a private equity firm. Loan Star Funds has become the largest purchaser of loans sold through HUD, Fannie Mae and Freddie Mac investment pools, according to figures compiled by the Center for Popular Democracy and ACCE Institute’s report entitled “Do Hedge Funds Make Good Neighbors?” The report goes on to criticize Caliber’s temporary loan modification program and emphasis on principal forbearance instead of principal reduction.
What does this mean if Caliber is your servicer and you are in default? An established firm with experience handling these cases is your best defense! Call Payton & Dann at 312-702-1000.