What is the Cornerstone Home Lending Fund?
Real homes. Real equity. Real collateral.
The Cornerstone Home Lending Fund is PPR’s flagship expression of the strategy the firm was built on. Since 2007, PPR has bought mortgages secured by real home equity, loans the banking system has walked away from because they don’t fit inside a regulatory box. PPR scaled that strategy through its strategic operating partner starting in 2020, and the Cornerstone Home Lending Fund opens it to investors in a dedicated fund with shared upside.
The fund acquires these mortgages well below property value. This is built around a simple principle: the fund’s position sits senior to the homeowner, so their equity absorbs risk before the fund’s capital ever does.
The loans in this fund are collateralized by single-family and other 1–4 unit residential properties, per the fund’s lending guidelines.
Stock photo, shown for illustration.
Key Terms
12–14+%
Targeted Net IRR
8%
Preferred Return, Paid Current
$50,000
Minimum Investment
3 Yrs from Final Closing
Up to 18-Month Fundraising Period
Accredited Investors Only
Approx. 50% of Investor Capital returned around month 36.
WHY NON-PERFORMING LOANS?
Post-2008 banking rules, like Dodd-Frank’s “ability-to-repay” requirements, pushed lenders away from an entire class of homeowner: people with significant home equity but damaged credit. Even in the 2008 crash, loans with this kind of equity cushion held up, losses stayed at just 1.30%, per Freddie Mac’s Single-Family Loan-Level Dataset. The Cornerstone Home Lending Fund is built to capture the gap between equity and credit, acquiring these loans well below property value.
Nearly 70% of resolved loans on this platform end with the homeowner current again or paid off in full with modification and resolution prioritized.
Life of a Non-Performing Loan
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How a non-performing loan resolves. Schematic of the paths a loan can take, not a distribution of outcomes; every loan is underwritten and worked individually.
WHY NOW?
Record levels of home equity have created a deep pool of opportunity. Roughly 35 million U.S. homes are owned free and clear, and 43% of mortgaged homes owe less than half their value, representing trillions in equity behind borrowers who don’t fit a standardized lending box. At the same time, recent market auctions of defaulted loans have cleared at roughly 45% of property value, confirming that well-collateralized distress continues to be priced at a meaningful discount in the market today.
A regulatory gap ensures durable supply of non-performing loans.
2010
Dodd-Frank created the CFPB and a sweeping new liability regime for mortgage lending.
2014
Ability-to-Repay/QM rules gave safe harbor only inside a standardized credit box — real liability for anything outside it.
Today
Banks offload non-performing paper to specialized firms to avoid attracting regulatory scrutiny, creating a consistent discount to market.
HOW WE UNDERWRITE
Every loan the fund considers goes through the same diligence process before a dollar is committed: nine separate reports covering compliance, servicing and pay history, title, municipal liens, property condition, valuation, foreclosure and bankruptcy status, and the loan file itself. That discipline is what allows the fund to price risk accurately across thousands of loans rather than case by case.
Due Diligence
Depending on the circumstances of the loan, a number of reports are pulled during due diligence:
- Compliance Review
- Servicing & Pay History
- Tax & Title Search
- Municipal Lien Search
- Exterior Property Inspection
- Valuation Analysis
- Foreclosure & Bankruptcy Review
- Assignment-of-Mortgage Review
- Initial Collateral Review
TRACK RECORD
PPR has run this strategy since 2007, scaling it through its strategic operating partner starting in 2020, and has earned investors $271M in preferred returns. The platform has acquired more than $2 billion in distressed residential debt and resolved over 11,000 loans, with every discount tier, even the deepest, net profitable. During this time, we have completed 6 loan securitizations, each one refinancing a pool of loans into long-term debt and freeing up capital without selling a single asset.
The Cornerstone Home Lending Fund is designed to extend this track record, and its underlying protection, into a new and focused vehicle.
Since
2007
-
$2B+
Distressed Residential Debt Acquired
-
$271M
Preferred Returns Earned Through Managed Funds
-
11,000+
Individual Loans Resolved
-
$1.3B+
Raised Across 6 Securitizations
IN ACTION: A RECENT GSE SALE
The NPL Flywheel
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In August 2025, a GSE (government-sponsored enterprise) completed its 27th non-performing loan sale: 1,304 deeply delinquent loans totaling $285 million in unpaid balance. PPR’s platform won one of the two pools offered, at a clearing price of roughly 49% of the underlying property value, following a similar winning bid in the GSE’s prior sale earlier that year.
This is the strategy in practice: acquiring real, institutional-scale pools of defaulted loans at close to half of what the underlying homes are worth, then working each loan through the same resolution process the fund is built to run at scale.
What Our Investors Are Saying
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