ABA Community Bank Mortgage LLC has selected Five Oaks Investment Corp. (NYSE: OAKS) (the "Company" or "Five Oaks") as its newest secondary market investor, a move that will allow owner banks to sell non-conforming jumbo loans on a servicing-released or servicing-retained basis to Five Oaks (through its wholly owned subsidiary, Five Oaks Acquisition Corp.) and access their full line of fixed rate and ARM products. Five Oaks is also announcing a private label servicing solution for owner banks.
"Our alliance with Five Oaks will provide owner banks with competitively priced jumbo products in markets that have previously been inaccessible," said Deborah Whiteside, president and COO of ABA Community Bank Mortgage LLC.
Co-owned by the Corporation for American Banking – an ABA subsidiary – and community banks, the ABA Community Bank Mortgage LLC leverages the power of joint ownership for better execution on loans sold into the secondary market. By aggregating volume, the LLC is able to leverage the quality and total volume of the owner banks' loan production.
"Five Oaks is very excited about providing a jumbo loan solution to the ABA's owner banks allowing them to sell their fixed rate jumbos to a public REIT non-competitor," said David Carroll, Chief Executive Officer of Five Oaks.
"This alliance with Five Oaks adds more value to the advantages our owner banks currently receive through our LLC," said John Schoemer, chairman of ABA Community Bank Mortgage LLC. Schoemer is also executive vice president of Presidential Bank, Bethesda, Md.
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