EverBank Plans 2nd RMBS

EverBank plans to tap the capital markets with its second RMBS deal of the year, a $303.3 million deal called EverBank Mortgage Loan Trust 2013-2.

Fitch Ratings has assigned preliminary ratings on the deal. The capital structure offers $278 million of ‘AAA’-rated class A notes; $7.28 million of ‘AA’-rated class B-1 notes; $5.46 million of ‘A’-rated class B-2 notes; $4.40 million of ‘BBB’-rated class B-3 notes; and $3.34 million of ‘BB’-rated class B-4 notes. Fitch did not rate the $3.94 million, class B-5 notes being offered.

The deal is jointly underwritted by Barclays and Bank of America Merrill Lynch.

The certificates are supported by 367 loans that are mostly prime 15-year and 30-year fixed-rate mortgages originated by EverBank.

Fitch said in the presale report that the structure closely resembles the issuer’s debut deal EBMLT 2013-1, issued in March.  However EBMLT 2013-2 benefits from an improved FICO distribution compared to EBMLT 2013-1, with just 2.3% of borrowers with FICOs below 720 vs. 5.4% previously.

The EverBank transactions adhere to the model rep and warranty framework developed post-crisis. The enforcement mechanisms include loan file reviews for loans that go 120 days delinquent and provisions for automatic arbitration to resolve disputes, and are key protections that offer greater confidence that an originator will maintain sound origination standards.

Tom Wind, executive vice president of lending at EverBank said in a recent interview with ASR’s sister publication, National Mortgage News that the plan is to come to market regulary, with similarly sized deals. 

How often deals would be done will depend on the bank’s rate of loan accumulation for the product it securitizes. The bank, which specializes in serving affluent clients and has a presence on both coasts, is securitizing its jumbo fixed-rate mortgages but also originates jumbo adjustable-rate mortgages that it keeps in portfolio.