A pair of ex-Fannie Mae portfolio managers will lead a new distressed mortgage asset management unit of Amherst Holdings LLC, known for its niche U.S. broker-dealer, according to an internal document obtained by Reuters.

Amherst Management Group aims to boost the value of "legacy," or existing bonds, and lay groundwork to help rebuild private securitization markets that have been dormant since the onset of the financial crisis, the memo said.

Amherst this month also registered a "RMBS Strategic Recovery" fund with the Securities and Exchange Commission. An Amherst spokesman declined to comment.

AMG will be led by David Gussmann, who managed efforts to minimize losses on the $60 billion on private-label residential mortgage bonds held by Fannie Mae, the memo said. Ramon de Castro, Amherst’s chief risk officer and a former Fannie Mae portfolio manager, will join Gussmann, it said.

Austin, Texas-based Amherst is also known for the depth of research provided by accolades-winning mortgage strategist Laurie Goodman. Goodman’s team has long criticized major banks in the country for failings in how they workout troubled loans which may be resulting in unwarranted costs to investors.

Her research this week was used by lawyers to support a push for investors to band together and force banks to admit breaches of servicing and loan quality. Investors could profit if banks are forced to repurchase the loans at face value.

It appears Amherst’s asset management group will also focus on existing customers, providing them with "assistance" to them enhance the value of their investments, according to the memo dated Aug. 18 from Chief Executive Officer Sean Dobson. (Reuters)