Will Oaktree run afoul of HUD requirements on distressed Baltimore mortgages?
OaktreeHUDBaltimoreMortgages-UNITE-HERE-102516
OaktreeHUDBaltimoreMortgages-UNITE-HERE-102516
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<str<strong>on</strong>g>Oaktree</str<strong>on</strong>g> Capital Management<br />
Los Angeles based <str<strong>on</strong>g>Oaktree</str<strong>on</strong>g> Capital Management is the world’s largest <strong>distressed</strong> debt investor,<br />
overseeing $98.1 billi<strong>on</strong> in assets under management as <str<strong>on</strong>g>of</str<strong>on</strong>g> June 30, 2016. 2 The firm specializes in<br />
corporate and <strong>distressed</strong> debt, with additi<strong>on</strong>al funds in real estate, private equity holdings, energy<br />
and infrastructure-related assets, and emerging market stocks.<br />
<str<strong>on</strong>g>Oaktree</str<strong>on</strong>g> Capital<br />
Ranieri Partners<br />
Management<br />
Funds managed by Funds managed by Funds managed by<br />
<str<strong>on</strong>g>Oaktree</str<strong>on</strong>g>*<br />
<str<strong>on</strong>g>Oaktree</str<strong>on</strong>g><br />
Ranieri Partners<br />
DC Residential IV**<br />
Selene Finance ***<br />
Christiana<br />
Trust/Sunset<br />
Mortgage Loan<br />
Trust<br />
<strong>Baltimore</strong> Loans<br />
<str<strong>on</strong>g>Oaktree</str<strong>on</strong>g> has c<strong>on</strong>tracted Selene Finance LP as the loan servicer resp<strong>on</strong>sible for managing <str<strong>on</strong>g>Oaktree</str<strong>on</strong>g>’s<br />
<str<strong>on</strong>g>HUD</str<strong>on</strong>g> loans across the country. 3 Founded in 2007, Selene is <strong>on</strong>e <str<strong>on</strong>g>of</str<strong>on</strong>g> two mortgage servicers selected<br />
as a Ginnie Mae Default Servicer. It is owned indirectly by investment funds managed by <str<strong>on</strong>g>Oaktree</str<strong>on</strong>g><br />
Capital Management and Ranieri Partners Management. 4<br />
*<str<strong>on</strong>g>Oaktree</str<strong>on</strong>g> has raised several real estate funds whose investment periods have overlapped with the firm’s DASP<br />
purchases: <str<strong>on</strong>g>Oaktree</str<strong>on</strong>g> Real Estate Opportunities Fund V, <str<strong>on</strong>g>Oaktree</str<strong>on</strong>g> Real Estate Opportunities Fund VI, <str<strong>on</strong>g>Oaktree</str<strong>on</strong>g><br />
Real Estate Debt Fund. 5<br />
** <str<strong>on</strong>g>Oaktree</str<strong>on</strong>g> purchased different DASP pools through varying purchaser entities, DC Residential I through<br />
DC Residential IV. DC Residential IV is resp<strong>on</strong>sible for purchasing the SFLS 2014-1, including 612 loans in<br />
<strong>Baltimore</strong>.<br />
*** Selene Finance is owned indirectly by investment funds managed by <str<strong>on</strong>g>Oaktree</str<strong>on</strong>g> Capital Management, L.P. and<br />
Ranieri Partners Management. 6<br />
2