New York-based Greenpoint Financial Corp. is ready to begin securitizing home equity collateral following the firm's March 30 purchase of Headlands Mortgage Co.

The program could begin as soon as this year, said a source close to the firm, though he would provide no details on specific deals.

Headlands has completed four A-level HELOC securitizations in the past totaling over $800 million. The firm originated $8.2 billion of mortgages in 1998, of which 10% comprised second mortgages, HELOCs and "closed-end seconds."

Greenpoint, known in the market primarily for securitizing manufactured housing debt, has filed a massive $5 billion shelf, which the source said was increased recently to accommodate the firm's manufactured housing transactions for the "next year or so."

Greenpoint's last deal was an $800 million, mostly fixed-rate transaction led by Lehman Brothers and insured by MBIA. The sale's largest class was a one-year piece that sold at nine basis points above one-month Libor. A small chunk - $70 million - contained variable rate securities. - SK

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