Cerberus Capital Management is planning a second securitization of re-performing and seasoned performing residential mortgages, according to DBRS.

A portfolio of two loan groups backs the deal, called Towd Point Mortgage Trust 2015-2. Group one pools approximately 3,121 loans with a balance of $715 million. The group two notes are backed by 1,289 loans with a balance of $243 million.

Group one is comprised of mostly re-performing loans that have generally been modified. For 83.4% of the modified loans, the modifications happened more than two years ago. The loans are approximately 102 months seasoned and 100.0% current, including 1.2% bankruptcy performing loans.  

Group one also includes 59 loans that had servicing transfer-related payment disruptions in March 2015, but these loans had clean 11-month payment histories as of March 1, 2015.

Group two contains loans that have not been modified and have no deferred amounts. The loans are approximately 76 months seasoned and 100% current. None of the Group 2 loans are in bankruptcy. Only two loans in this had servicing transfer-related payment disruptions in March 2015, but these loans had clean 11-month payment histories as of March 1, 2015.

DBRS assigned preliminary ‘AAA’ ratings to the senior, $360 million tranche of class A notes backed by group one loans, which benefit from credit enhancement of 49.5%.

The rating agency also ssigned preliminary ‘AAA’ ratings to the $166 million of class 2-A1 notes backed by group 2 loans, which benefit from credit enhancement of 31.6% and ‘AA’ ratings to the $16 million of class 2-A2 notes, which benefit from credit enhancement of 25%.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.