The Düsseldorfer Hypothekenbank AG, also known as DüssHyp, is a

mortgage bank A mortgage bank is a bank that specializes in originating and/or servicing mortgage loans. In the United States, a mortgage bank is a state-licensed banking entity that makes mortgage loans directly to consumers. The difference between a mortgag ...

based in

Düsseldorf Düsseldorf is the capital city of North Rhine-Westphalia, the most populous state of Germany. It is the second-largest city in the state after Cologne and the List of cities in Germany with more than 100,000 inhabitants, seventh-largest city ...

that specializes in government and real estate financing. (Until the mortgage bank law was abrogated, this term referred to a

private law Private law is that part of a legal system that governs interactions between individual persons. It is distinguished from public law, which deals with relationships between both natural and artificial persons (i.e., organizations) and the st ...

credit institution granting long-

term loan A term loan is a monetary loan that is repaid in regular payments over a set period of time. Term loans usually last between one and ten years, but may last as long as 30 years. A term loan involves paying interest with the interest amount being a ...

s secured by mortgages and loans to public authorities.) Refinancing takes place through issuing bonds via the capital market. The bank specializes in commercial real estate financing. It only engages in direct business to a limited extent; the focus is on syndicate business.

History

The institute was founded by the entrepreneur :de:Wolfgang Schuppli . As a consequence of the

2008 financial crisis The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...

, it was necessary for the deposit guarantee fund ( :de:Einlagensicherungsfonds) of the Federal

Association of German Banks The ''Bundesverband deutscher Banken'' (BdB, also branded as Bankenverband and in English as Association of German Banks) is the representative body of profit-oriented banks in Germany and a key lobby group for Germany's financial sector. The Bd ...

(BdB) to take over the shares in 2008. It sold them in 2010 to LSF5 German Investments II, L.P. in

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(94%) and to LSF5 Riverside Ltd. & Co KG in

Frankfurt Frankfurt am Main () is the most populous city in the States of Germany, German state of Hesse. Its 773,068 inhabitants as of 2022 make it the List of cities in Germany by population, fifth-most populous city in Germany. Located in the forela ...

Germany Germany, officially the Federal Republic of Germany, is a country in Central Europe. It lies between the Baltic Sea and the North Sea to the north and the Alps to the south. Its sixteen States of Germany, constituent states have a total popu ...

(6%) companies belonging to the Lone Star Group. This group was also a shareholder of the Corealcredit Bank. Schuppli later sued the BdB and other defendants for approx.

€ The euro sign () is the currency sign used for the euro, the official currency of the eurozone. The design was presented to the public by the European Commission on 12 December 1996. It consists of a stylized letter E (or epsilon), crossed by t ...

500 million in damages because the sale came only through threat and coercion. The charge was dismissed in the

first instance First most commonly refers to: * First, the ordinal form of the number 1 First or 1st may also refer to: Acronyms * Faint Images of the Radio Sky at Twenty-Centimeters, an astronomical survey carried out by the Very Large Array * Far Infrared a ...

. The balance sheet total decreased to € 11 billion as of 30 June 2013 compared to the end of the previous year. The accumulated loss amounted to € 516.4 million in mid-2013; This result was essentially based on the loss carryforward, thus largely coming from the result of earlier financial years. In December 2013, with the maturity of a bond issued by the Düsseldorfer Hypothekenbank of 1.1 billion, the last remaining liquidity guarantee of the

SoFFin The SoFFin (Sonderfonds Finanzmarktstabilisierung - Special Financial Market Stabilization Funds) is a program of the Cabinet of Germany, German government with the purpose to stabilize and restore confidence in the financial system. It was creat ...

was repaid. The Lone Star Group - allegedly - sold their shares to the MainFirst founder Patrick Bettscheider and the

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investment company Attestor Capital. However, it became known in March 2015 that the Düsseldorfer Hypothekenbank once again faced bank failure in the wake of the Hypo Alpe Adria crisis, implying that the ownership status was unclear. On 15 March 2015, the Federal Association of German Banks announced that the private-sector deposit guarantee fund provided a guarantee for the so-called

Heta Heta is a conventional name for the historical Greek alphabet letter Eta (Η) and several of its variants, when used in their original function of denoting the consonant . Overview The letter Η had been adopted by Greek from the Phoenician let ...

bonds in order to eliminate the acute risks. The aim is to take over the bank through the Deposit Guarantee Fund. According to its 2017 Annual Report, an investment company of the Deposit Guarantee Fund is the sole shareholder. The Bank is a member of the Association of German Banks ( :de: Bundesverband deutscher Banken )and the

Verband deutscher Pfandbriefbanken The Association of German Pfandbrief Banks (), abbreviated vdp, is the interest group of German banks which issue a form of property-backed covered bond known as Pfandbrief. vdp member institutions are also engaged in ship and aircraft finance. Th ...

Key figures

References

External links

Official Website
{{Authority control Banks of Germany Corporate finance Companies based in Düsseldorf 1997 establishments in Germany