MBS

Conforming single-family homes, 65.3%, comprise most of the portfolio, and none of the borrowers in the portfolio had availed themselves of COVID-19 related forbearance.

Sequoia Mortgage Trust is among the first to include a distributed ledger agent in its reporting processes.

The varied portfolio includes loans with strong credit profiles, a WA FICO score of 734 and an original, combined loan-to-value of 68.3%.

A majority of the deal was underwritten to a less-than-full documentation standard, but meets ATR standards. Almost half of the loans are on California homes.

All but 501 of the loans in the pool were assessed following the new general QM rule. Otherwise, the pool is largely comprised of jumbo, prime loans.

Just a handful of loans in the securitized pool of investor properties, or 0.7%, had been enrolled in a coronavirus related forbearance plan.

The 10 largest loans in the deal have high balances, ranging from $2 million to $2.9 million, and California represents half of it’s geographic concentration.

Industry observers say they expect current market conditions to support healthy deal flow through the end of 2021.

Primarily, the underlying mortgage collateral consists of 1,982 peak-vintage seasoned and re-performing loans, about 90% of which have been modified.

Single-family rental houses and townhomes underpin the securitization, with a feature to transfer or obtain a release of any property that meets conditions.

The Fed has pledged to maintain the pace of purchases until “substantial further progress” is made on employment and inflation.

Approaching the market with its third and largest deal this year, non-QM originator and issuer Angel Oak Home Loans LLC (AOHL) plans to issue $303 million in asset-backed securities following the recent completion of its initial public offering.

The deal has a shifting-interest structure that determines senior principal distributions by comparing the senior bond size to the collateral balance.

The U.S. Supreme Court gave Goldman Sachs Group Inc. a new chance to stop a lawsuit accusing it of misleading shareholders by masking conflicts of interest in MBS it sold.

About 18.5% of borrowers in the mortgage pool were self-employed, a slightly lower level than the combined percentages for 2020 and 2021 deals.

A portfolio of mixed-quality mortgage loans secures the deal, some of which adhere to ATR underwriting mandates from the CFPB.

When the Federal Reserve starts scaling back its massive bond-buying spree, mortgage traders are betting their market will be at the forefront.

The $1 billion mortgage securitization is smaller than several recent deals, and features modified mortgages. But subordination supports senior notes.

The transaction, FSMT 2021-4, is one of the trust’s largest deals in the last several years. Half of the mortgages are on properties located in California.

The bonds will be backed by a first-lien mortgage on Willowbrook Mall, a 1.52-million-square-foot shopping center in Houston.