Cerberus Capital Management is planning a securitization of re-performing residential mortgages, according to Fitch Ratings.
The $395.75 million Towd Point Mortgage Trust 2015-1 is backed by primarily (83.7%) by loans that were once delinquent have been making payments for the past 24 months, which Fitch identifies as “clean current.” The remaining loasn used as collateral (16.3%) are current but have recent delinquencies, which Fitch refers to as “dirty current” (16.3%). No loans were past due 30 or more days as of the cutoff date and roughly 88% have received modifications.
Roughly 68.8% the loans are fully amortizing, while 31.2% are still in their interest-only periods. Servicing of the loans will be performed by Select Portfolio Servicing. There is no master servicer for the transaction
Certain special purpose entities owned by affiliates of Cerberus Capital Management obtained the loans in the pool through seven purchases in the secondary market in 2014.
BofA Merrill Lynch is the underwriter.
Fitch has assigned an AAA’ rating to the senior, $209 million tranche, which benefits from credit enhancement of 47%.