Morgan Stanley is marketing its second prime jumbo residential mortgage loan securitization of the year, and only the fifth of the post-crisis era.
The $500.2 million Morgan Stanley Residential Mortgage Loan Trust 2021-2 is supported by 547 prime-quality loans, many of them large-balance loans with outstanding obligations exceeding $1 million.
The average loan balance of $914,397, according to ratings agency presale reports, with 159 of the loans have balances over $1 million. The largest being $2.61 million.
All of them fixed-rate mortgages originated by various originators.
The borrower credit characteristics include a 774 average FICO, debt-to-income and low leverage of 73.7% loan-to-value ratios.
Both Fitch Ratings and Kroll Bond Ratings Agency have assigned preliminary AAA ratings to the senior notes in the deal.
The deal is similar to Morgan Stanley’s earlier non-conforming RMBS transaction earlier this year, although borrowers have comparably more liquid reserves ($727,434 vs. $331,203 in the 2021-1 deal).
None of the loans were in a coronavirus-related forbearance plan at the time of the pool’s cutoff date.
