Dublin, OH—Cornerstone Capital Partners Corporation, a private development, acquisition, and investment firm, made a principal investment in a pool of residential fixed and ARM mortgages from Mortgage Network, Inc. The portfolio is comprised of 64 first and second lien mortgages in various states across the U.S. with a portfolio value of $6.5 million.

Cornerstone made its investment in the U.S. residential housing assets because of the economics of the transaction and experience gained in working with distressed loans.

The selling company, Mortgage Network, Inc., is a private mortgage banking company based in Danvers, Massachusetts that originates, processes, closes, purchases, sells and services mortgage loans. Cornerstone completed thorough due diligence on every loan in the pool in light of risk and economic stresses to create the best valuation platform for the investment.

"It is very important to examine the borrower and collateral in detail and use market information to project default and ultimate recovery from the loans," said Peter Paras, CEO.

The current problems in the housing market have given rise to unique opportunities in distressed asset acquisitions in the mortgage security market over the past years. Though coming with extreme difficulties, Cornerstone has navigated with success and continues to expand their knowledge of the market.

Cornerstone works with a servicer to service the loans and communicate with borrowers.