In what is being called record issuance, mortgage giant GMAC-Residential Funding Corp. said it churned out $6.4 billion in mortgage-related securitizations during the quarter to become the most active issuer of mortgage-related securitization for the period.
According to the Minneapolis-based lender of first- and second mortgages, while GMAC-RFC's second-quarter production was off 26% from the first-quarter volume of $8.6 billion worth of deals, the second-quarter's results were enough for the company to produce $15 billion worth of mortgage-related product for the 1999 first half, a record number and the highest of any issuer in its sector, the company said.
That product took on several forms, including home-equity loans, subprime mortgages, 125% loan-to-value mortgages and first mortgages with special documentation needs.
Being the No. 1 securitizer of mortgage-related product is nothing new for GMAC-RFC. The company since 1995 has been the biggest producer of private-label, or nonagency, mortgage-backed securities.
The high volume is likely to continue into the third quarter, as the company plans to price $1 billion to $1.2 billion in high LTV collateral, with additional volume slated for the fourth quarter as well. Already this year the company has issued $865 million in high-LTV bonds, breathing life into an asset class that for a time was languishing. - JS