Cerberus buying US mortgages shunned by banks

Washington

IF you have a modified mortgage made around the time of the US housing market's peak, Cerberus Capital Management probably wants to buy it.

The investment firm has acquired more than US$5.7 billion in residential loans as at the end of July, mostly consisting of mortgages issued from 2005 to 2007 and then modified, according to a marketing document obtained by Bloomberg. The company is seeking to increase the purchases, which are tied to homeowners who are less likely to default because they've been making regular payments for several years.