The Hispanic National Mortgage Association (HNMA), a for-profit organization focused on increasing homeownership opportunities within the Hispanic market, and Deutsche Bank have launched a new national correspondent lending operation, HNMA Funding Company, which offers innovative loan programs for Hispanic and other immigrant borrowers.

Headquartered in San Diego, HNMA Funding is a joint venture, jointly owned and capitalized by HNMA and Deutsche Bank. HNMA Funding has already begun purchasing closed loans from mortgage lenders, community banks and credit unions across the country on a mini-bulk or bulk basis. The liquidity provided by HNMA Funding will enable lenders to make low down-payment loans to borrowers who lack traditional credit. HNMA Funding’s programs will enable lenders to offer competitive interest rates that will be significantly lower than the sub-prime rates that a large portion of Hispanic borrowers have historically been offered.

Deutsche Bank and HNMA Funding will jointly participate in the purchase, securitization and sale of these mortgages in the secondary market. HNMA Funding will also retain credit risk and invest in residual pieces of mortgage-backed securities.

"The launch of HNMA Funding is a natural evolution in our parent organization’s mission," said Leonardo Simpser, CEO of HNMA Funding. "We have been working with the mortgage and capital markets to increase their understanding of the size and diversity of our market and the financial needs and the behavior of the Hispanic and immigrant borrowers. By creating a new liquidity vehicle for mainstream lenders, we are addressing one of the major impediments to Hispanic homeownership, demonstrating our commitment to this market and our willingness to accept and retain credit risk."

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