Annaly Capital Management Inc. has formed Shannon Funding LLC, a wholly owned subsidiary that intends to provide warehouse financing and other services to residential mortgage originators. Shannon Funding will be led by Bruce E. Watterson, a veteran mortgage finance executive who most recently was a managing director at LPS Capital Markets, a division of Lender Processing Services.
The new subsidiary, which will operate out of offices in Bellevue, Wash., plans to begin operations in the first quarter of next year.
Michael A.J. Farrell, Annaly's president and CEO, says small- and medium-sized mortgage companies are challenged to source warehouse funding in the current market.
‘Shannon plans to provide funding to these smaller participants in order to help them generate well-underwritten mortgage products,’ he says. ‘As opportunities present themselves in the future, Shannon will expand its strategy and operations into additional markets."
Watterson has over 25 years of experience in mortgage banking, diligence, servicing and technology. He was founder of Watterson-Prime LLC, which provided due diligence, portfolio stratification and other consulting services to buyers and sellers of financial, residential and commercial mortgage assets, and also launched Watterson-Prime Software Inc., a software and technology company serving the asset-backed finance industry.
SOURCE: Annaly Capital Management Inc.