Paladin Strategic Partners, LLC Acquires a Controlling Interest in the HomeSaver Mortgage Management, LLC

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Mon Nov 9, 2009 1:03pm EST

Paladin Strategic Partners, LLC Acquires a Controlling Interest in the
HomeSaver Mortgage Management, LLC
New socially responsible Emerging Manager joins with existing asset management
company to expand HomeSaver's non-performing residential mortgage acquisition,
management and remediation business, focused on aggressive mortgage
modification.



NEW YORK, Nov. 9,/PRNewswire/ --Paladin Strategic Partners ("Paladin")
announced today the acquisition of a controlling interest in HomeSaver
Mortgage Management, LLC ("HomeSaver").  HomeSaver (formerly ARC/Westwood
HomeSaver Management, LLC) is an asset management company formed to utilize
private capital in acquiring bank-owned portfolios of troubled mortgage assets
and implement modification and remediation strategies the lenders and
government have been thus far unable to effectuate.

HomeSaver and its partners believe that the number of borrowers facing
foreclosure will increase considerably over the next 12 months. Continuation
of present trends mitigates in favor of alternative forms of resolution,
consistent with prudential regulation of the banking system (which holds over
$2.9 trillion in residential "whole loans"), political realities and social
responsibility.  

First American CoreLogic, Inc. estimates that over 32% of the 52 million+ U.S.
homeowners with mortgages are currently "underwater" relative to home value,
and many housing analysts expect that figure to exceed 45% in 2010.  According
to RealtyTrac, Inc., foreclosure actions in 2009 are expected to exceed 3.4
million, and move higher in 2010 (relative to a normalized rate of 520,000 per
annum).  Actual repossessions of homes in the U.S. this year are expected to
exceed one million, over ten times the rate of a typical year.  At the same
time, RealtyTrac estimates that over 500,000 such repossessions are being held
off the market by foreclosing lenders, for fear of causing additional real
estate market disruption.

"Many of the current loan remediation programs are simply not working.
HomeSaver is uniquely positioned to step in and work with homeowners during
this crisis, as well as with selling banks," said Carl Webb, Managing Partner
of Paladin.  "HomeSaver employs an aggressive and 'socially responsible'
workout approach toward loan remediation. We feel that HomeSaver has
demonstrated what the non-bank private sector, unburdened by legacy assets,
can do to achieve ultimate resolution of the residential mortgage nightmare,"
Webb added.

Len Blum, a Managing Partner of Westwood Capital Holdings, noted "recent
stabilization in home prices is not likely to be sufficient to reverse the
ballooning numbers of foreclosures and underwater mortgages.  Nor is it
reasonable to expect that residential real estate values will be restored to
those of the bubble-era, for the foreseeable future.  Consequently, strategies
that emphasize eventual loan principal reduction, such as those employed by
HomeSaver, are the only realistic alternatives."

"The banks that are most exposed to the risks posed by legacy loans are
signaling their understanding of the predicament they are in, by amassing
record levels of balance sheet liquidity, and conserving capital, in
preparation for increased loan disposal losses and provisioning," Blum added.

About Paladin Strategic Partners, LLC
Paladin Strategic Partners, LLC ("Paladin") is a vertically integrated
investment management firm that is engaged in managing distressed and
non-distressed assets and providing structured finance advisory services.
Paladin is a socially-responsible, emerging manager founded in 2009 to
participate in distressed investment opportunities.

About Westwood Capital Holdings, LLC
Westwood Capital Holdings, LLC is the parent of Westwood Capital, LLC, an
investment bank that focuses on several areas of the financial services
spectrum, including securitization and corporate finance, mergers and
acquisitions, financial advisory services, project development finance and
real estate advisory services, restructuring advisory services, and litigation
support. Westwood serves clients in many areas, particularly in the United
States, the Far East, the Middle East and Europe. Westwood was founded in 1995
and is based in New York City. 

About HomeSaver Mortgage Management, LLC
HomeSaver is a socially responsible financial asset manager that was created
to provide private capital with the opportunity to profit from dislocations in
the residential mortgage market by focusing on loan remediation, modification
and refinancing.  HomeSaver acquires and restructures non-performing
residential mortgages throughout the United States.

    Paladin Strategic Partners, LLC
    Jason Barrett - 917-267-4547
    jason.barrett@paladinsp.com

    HomeSaver Mortgage Management, LLC
    Michael Mattera - 212-867-2213
    mmattera@westwoodhsm.com




SOURCE  Paladin Strategic Partners, LLC

Paladin Strategic Partners, LLC, Jason Barrett, +1-917-267-4547,
jason.barrett@paladinsp.com; or HomeSaver Mortgage Management, LLC, Michael
Mattera, +1-212-867-2213, mmattera@westwoodhsm.com
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