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From Kirsten Bischoff, Opalesque New York: Firms investing in the mortgage backed securities arena are beginning to hear terms like “vulture investor” hoisted upon them, and so it is not surprising they are loathe to discuss the opportunities they are finding at what may be seen as the expense of others.

“What’s going on is horrible. I wouldn’t gloat about making money from this,” Steve Persky, co-founder of Dalton Investments recently told Portfolio Magazine. However, as the rate of foreclosures skyrockets, in the end, such private investments may offer some of the best hope for homeowners to remain in their homes.

NY-based mortgage lender Lend America’s foray into the hedge fund space has meant the development of the Maximum Principal Recapture Program, which assists managers in identifying non-performing loans within a portfolio and works to refinance these mortgages to the benefit of both parties.

“We decided to create a program where we could go directly to the people who owned the loans, sit down with them, and analyze the loans in order to come up with a strategy on how we could re-finance as many as possible,” senior managing director Nick Bratsafolis told Opalesque.

Lend America’s program anticipates the Troubled Asset Relief Fund’s plan to leverage government funds with private money to help stabilize banks, a program which the Fed says will expand to as much as $1tln and grow to include commercial real estate and certain residential mo......................

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