Ocwen Financial is back with another round of term notes issued from its Ocwen Master Advance Receivables Trust (OMART).
OMART is backed by reimbursement rights to interest and principal payments that Ocwen advances to mortgages it services, when homeowners fall behind on their mortgage payments. It refinanced a previous $1.8 billion servicer advance facility.
The sponsor plans to issue $600 million of term notes, according to Standard & Poor's.
The 2015-T2 series will offer $164 million of 'AAA' rated, class A notes; $7.1 million of 'AA' rated class B notes; $7.6 million of 'A' rated class C notes; and $21.2 million of 'BBB' rated class D notes. The notes mature on Nov. 15, 2046.
The 2015-T3 series will offer $325 million of class A notes; $13 million of class B notes; $18.7 million of class C notes and $42.9 million of class D notes. The notes mature on Nov. 15, 2047.
Series 2015-T2 and 2015-T3 are two of six series issued (or being issued) by OMART. The other four series, 2014-VF3, 2014-VF4, 2015-VF5, and 2015-T1, have notes with outstanding S&P ratings.
Typically servicer advance master trusts are structured with two components: variable funding notes (VFN) and term asset-backed securities. A VFN is essentially revolving line of credit that is typically placed with one or a handful of banks or other institutional investors. It can be drawn and paid down, sometimes within the same month, to fund the servicer’s advance activity.
Credit Suisse, Morgan Stanley and Barclays are the lead managers.