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November 11, 2016  

Parekh Recruited for Mortgage-Conduit Effort

An investment management firm with a mortgage-investing unit has tapped veter-an banker Ketan Parekh to develop a securitization business.

Parekh, who ran Ameriquest’s massive mortgage-bond program prior to the market crash, started this week at Window Rock Capital, a Gilbert, Ariz., company with ties to Cardon Group, a family office in Mesa, Ariz. His mandate: build a mortgage conduit focused on loans that don’t meet the Consumer Finan-cial Protection Bureau’s qualified-mortgage standards.

Parekh, who is based in New York, is working through Window Rock’s newly formed mortgage-origination unit, Ventana Loan Services. Among his first or-ders of business is lining up correspondent lenders to contribute to Ventana’s non-qualified mortgage pipeline. To that end, Parekh expects to pick up many of the correspondent-lending relationships he inked for his previous employer, WinWater Home Mortgage.

The expectation is that Ventana would begin tapping the securitization mar-ket at the end of 2017, with regular dealflow thereafter. Window Rock would deploy capital from a hedge fund, Window Rock Credit Opportunities Fund, to retain the deals’ subordinate tranches in compliance with the Dodd-Frank Act’s risk-retention rules.

In addition to reaching out to correspondent lenders, Parekh is in talks with a number of Wall Street banks about securing warehouse lines of credit. He is being assisted by former WinWater colleague Joseph Kohout, who joined Window Rock in August.

Parekh had been heading a jumbo-loan conduit program at WinWater, an opera-tion run by hedge fund manager Premium Point Investments until it pulled the plug about six months ago. A few months later, Premium Point went out of busi-ness. Parekh remained on board until recent days to liquidate WinWater’s loan portfolio.

Before joining WinWater last year, Parekh played a key role in Bank of America’s mortgage-bond underwriting unit. He joined BofA via its financial-crisis takeover of Merrill Lynch, where he had spent about three years. But he is best known for his tenure at Ameriquest, during which time the now-defunct lender issued 226 mortgage-bond deals totaling $146 billion, according to As-set-Backed Alert’s ABS Database.

Cardon Group has more than $500 million under management. Window Rock, launched by Patrick Cardon in 2010, was managing $129 million at yearend 2015.

CORRECTION (11/18/16): This article has been revised. The original version mischaracterized Window Rock Capital, the new employer of Ketan Parekh. Window Rock is a stand-alone company that counts Cardon Family Office as an investor, but isn’t an arm of Cardon Group. The article also misspelled the name of Window Rock executive Joseph Kohout.