Loan Trading
Loan trading is a key tool for managing your loan portfolio and balance sheet. Whether responding to changing market conditions or rebalancing loan concentrations, trading seasoned bulk loan pools can improve liquidity, help manage interest rate risk, enhance net interest margin, and provide capital relief. Additionally, we are active with the valuation and trading of mortgage servicing rights (MSRs) as part of broader balance sheet strategies.
FHN Financial offers a complete range of services associated with buying and selling loans:
Loan data review & portfolio analysis
Strategy development & pricing
Marketing, underwriting & due diligence
Contracts, closing, funding & servicing transfers
Supplemental Loan Program (SLP)
Monthly Flow Purchases of Prime Residential Mortgage Production
The Supplemental Loan Program (SLP) helps banks and credit unions grow their loan portfolios by acquiring high-quality, full-documentation, servicing-released mortgages from trusted correspondent originators. These originators maintain long-standing relationships with First Horizon Bank, supported by billions in mortgage warehouse financing.
FHN Financial handles the entire process—from daily pricing, rate locks and pipeline management to underwriting, compliance verification, funding, and servicing transfer support—making participation seamless for investors.
Advisory
With experience in over 350 M&A transactions, FHN Financial provides expert guidance on lending, servicing, and loan portfolio strategies. We perform loan valuations for bidding and closing; sample due diligence to assess liquidity and loss exposure; suitability analysis of acquired portfolios; access to a broad network of fixed income and loan buyers; and strategic loan sale processes to drive competitive pricing.
Analysis
Our proprietary analytics support long-term portfolio performance and risk management across all major loan types. The Portfolio Performance Analysis (PPA) is a proprietary service that provides institutions with a detail review of their loan portfolio that includes portfolio composition and liquidity; interest rate sensitivity and valuation; prepayment and credit risk layering; collateral value and peer comparisons; and strategy and performance trend analysis.
Valuation
We offer ASC 860-compliant servicing valuations and portfolio performance analysis (PPA) to support regulatory compliance and provide clear insights into servicing asset value.
Who We Serve
Over 35 years of experience partnering with a range of institutional customers
Recent Transactions
TD Bank
- The sale was part of TD Bank’s asset disposition strategy announced in 2024
- The loans were a mix of fixed rate and hybrid ARMs with 3+ years of seasoning
- Strong credit and performance profile of the loans appealed to a wide variety of investors, including banks, insurance companies, and private equity
- Transaction size represented unique opportunity for investors to deploy a sizable amount of capital
- Extensive auction process culminated in best execution through Bank of America Securities residential mortgage group
WaFd Bank
- FHN Financial Capital Assets Corp. acted as exclusive placement agent for WaFd’s $2.8 billion sale of Multifamily loans
- The loans were sold to Bank of America and funds managed by Pacific Investment Management Company (“PIMCO”)
- Due to the strong credit quality of the loans, the sale price of approximately 92% of the principal balance was largely attributable to the in interest rates
- All of the sold loans were originated by Luther Burbank Savings, which was acquired by WaFd in March 2024
- Multifamily and other Commercial Real Estate loans secured by industrial, hospitality, storage, office and owner occupied properties are targeted investments for various money managers, insurance companies and depositories
Leaders that set the standards.
FHN Financial Loan Advisory and Trading has played a leading role in shaping the modern secondary loan market since 1988. Our team was instrumental in the development of flow origination products tailored to meet specific investor needs and were early pioneers in expanding the secondary market for portfolio loans — most notably through the creation of the agency seasoned bulk window with Fannie Mae and Freddie Mac. Our expertise spans every aspect of the loan business, including strategy, pricing, underwriting, servicing, and delivery.
Our Management Team
Mitchell Redd
Senior Vice President, Head of Loan Advisory and Trading
Mark Cary
Senior Vice President, Loan Trader
Paul Briggs
Loan Trader
Kevin Branyan
Vice President, Senior Pricing Strategist
Rachael Leamon
Vice President, Senior Pricing Strategist
David Cluck
Senior Vice President, Operations Manager
Russell Knox
Senior Vice President, Chief Information Officer
Jerry Hubbard
President Emeritus
Connect with Us
Contact our team to explore loan trading strategies tailored to your institution.