Bayview Asset Management is marketing two offerings of bonds backed by mortgages that were once delinquent but are now making timely payments.
Like the sponsor's last several deals, the loans are secured by properties with very low values, which tend to experience higher loss severities when borrowers default (or redefault), according to Fitch Ratings.
Opportunity Master Fund IVb Trust 2017-SPL2 is backed by 3,342 seasoned performing loans and re-performing loans, of which 91.4% pay daily simple interest, totaling $189.44 million.
The loans are seasoned approximately 10 years with roughly 96.4% of the pool paying on time for the past 24 months and 92.4% current for the past three years. In addition, 36.1% of the pool has been modified due to performance issues, while the remaining loans were either not modified (29.6%) or had their interest rates reduced due to an interest rate reduction rider incorporated at origination (34.3%).
Based on Fitch’s analysis, the average current property value of the pool is approximately $99,000, which is much lower than the average of other Fitch-rated RPL transactions of over $150,000.
The second transaction, Bayview Opportunity Master Fund IVa Trust 2017-SPL1, is supported by a pool of 5,733 loans, 92.6% of which pay daily simple interest, totaling $347.94 million. These loans are also seasoned approximately 10 years with roughly 95.4% of the pool paying on time for the past 24 months and 91.6% current for the past three years. In addition, 39.5% of the pool has been modified due to performance issues, while the remaining loans were either not modified (28.6%) or had their interest rates reduced due to an interest rate reduction rider incorporated at origination (31.9%).
Fitch estimates average property value at $106,000.
Bayview, based in Coral Gables, Fla., is controlled by the Blackstone Group.
