Agate Bay’s third residential mortgage backed securitization of this year pools loans with lower leverage and higher FICOs compared to the issuer first two deals of the year, according to Kroll Bond Ratings Agency.

The deal, called Agate Bay Mortgage Trust 2015-3, securitizes a pool of jumbo, prime, residential, 30-year, fixed-rate mortgage loans worth $241 million. The average loan is sized $719,581.

The credit quality of the borrowers in ABMT 2015-3 is strong, as evidenced by WA current credit scores 775. Agate Bay’s previous transaction ABMT 2015-2 and ABMT 2015-1 have WA FICO of 779.  

Loans in the pool have a WA LTV of 63% compared to LTVs of 65.6% and 66.8% for the previous transactions. Lower leverage in the ABMT 2015-3 pool protects against the risk of high defaults and loss severities, according to a Kroll presale report. The loans are mostly originated in California, Virginia and Maryland.

Most of the loans (334 of 335) are subject to ability-to-pay rules and qualify for a legal safe harbor.

NYCB Mortgage Company, George Mason Mortgage and Parkside Lending are the top 3 loan originators. Cenlar FSB services 1005 of the loans.

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