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AIG sponsoring $397M 'super prime' jumbo RMBS

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American International Group Inc. is sponsoring its second 2019 securitization of “super” prime jumbo fixed-rate mortgages acquired by AIG affiliates, according to presale reports from Fitch Ratings and Kroll Bond Rating Agency.

PSMC (Pearl Street Mortgage Co.) 2019-2 is a $397.1 million transaction with a collateral pool of 568 30-year and 20-year fixed-rate, fully amortizing mortgage that meet the safe harbor provisions of the Consumer Financial Protection Bureau’s qualified mortgage rules.

The pool has a weighted average FICO of 776 for prime borrowers with a substantial amount of equity: the current loan-to-value ratio of the loans is 71.9%. The loans are seasoned an average of four months, with a weighted average coupon of 4.1%.

The top originators of the loans in the pool were by Caliber Homes Loans (13.5% of the pool’s loan balances), Parkside Lending (5.81%) and Commerce Home Mortgage (5.77%).

The deal follows AIG’s June 2019 transaction that pooled 472 first-lien loans underwritten to high-net-worth borrowers.

That transaction had a higher percentage (75.6%) of purchase loans, compared to 54% for PSMC 2019-2.

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RMBS prime jumbo