Hanover Capital Partners Ltd. owns one of the few residential mortgage real estate investment trusts, or REITs, whose stock price has climbed this year.
But Hanover has more than just mortgage assets.
It is really a three-part company, with investment banking, due diligence, and residential mortgage units.
It was formed in 1989 by four former Citibank mortgage finance veterans who worked with the Resolution Trust Corp. and the Federal Deposit Insurance Corp. in the late 1980s, advising them on loan sales.
Hanover Capital Mortgage Holdings Inc., the REIT, went public in September at $15 a share. It was trading at $16.50 at yearend and $19.50 late Wednesday. Those gains contrast with dramatic drops suffered by many of Hanover's peers.
John A. Burchett, president of Hanover Capital Partners, heads the investment banking division, which recently helped orchestrate the $1.2 billion acquisition of HomeSide Inc. by National Australia Bank.
Joyce S. Mizerak, managing director, heads the company's due diligence arm.
About 70 of the top 100 financial institutions have retained Hanover's services, most often to help them evaluate loan portfolios they have purchased or are considering selling off.
"They hire us to go in and figure out what's wrong," Ms. Mizerak explained. The company's $600 million-asset REIT is headed by Irma N. Tavares.
The unit specializes in what Hanover executives refer to as "scratch and dent" residential mortgage loans.
"They were originated as A loans" by banks and thrifts, Ms. Tavares explained, but have payment history problems that prevent them from being sold on the conventional secondary market. Hanover is planning a $100 million securitization that will hit the market in March, she said.
George J. Ostendorf serves as senior relationship manager for Hanover, securing clients and product for the company.
Hanover also originates a small number of multifamily mortgage loans.