New Residential Mortgage is marketing $334.5 million of bonds backed by a pool of residential mortgages to borrowers who were once delinquent but are now making timely payments, according to Kroll Bond Rating Agency.
The deal, called New Residential Mortgage Loan Trust (NRMLT) 2015-1, is the company’s first of the year; it completed three last year.
Nationstar Mortgage will be the master servicer on the deal, while Specialized Loan Servicing will be the servicer. Citibank is the owner trustee and paying agent for the deal.
Kroll has assigned its AAA’ rating to three senior tranches. Standard & Poor’s, which rated all three of New Residential’s RMBS transactions last year, has yet to release a presale report or preliminary ratings for the latest deal.
NRMLT 20150-1 backed by 1,439 fully-amortizing, fixed-rate 30-year mortgage loans that are secured by single family homes (74.42%), planned unit development properties (21.32%), condominiums (2.49%), two-to-four family residential properties (1.66%), and manufacturing housing (0.12%). The loans have an average balance of $231,726 and average seasoning of 146 months.
Borrowers in the pool have a current weighted average (WA) FICO score of 715, which is just slightly higher than NRMLT 2014-3, but in line with New Residential’s first two RMBS transactions of 2014. The loans have a WA loan-to-value (LTV) ratio of 44.6%, which is notably lower than any of the three securitizations of 2014. The low WA LTV implies that borrowers have substantial equity in their property; it provides investors with a higher margin of safety against potential housing price declines.
Although most of the loans in the pool are now current, roughly 13.9% of them are 30 days delinquent and/or exhibit the characteristics of re-performing loans. A majority of the borrowers (71.2%) have made all of the last 24 payments.
Similarly to New Residential’s previous deal, the state with the largest concentration of properties is California (36.9%). The states with the next largest concentrations for NRMLT 2015-1 are New York (9.7%) and Florida (5.2%).