Banc of Manhattan Capital, Woodland Hills, Calif., is taking bids on a $26 million pool of reperforming whole loans, servicing released.
The seller's identity was not disclosed. The winning bidder will need to be Home Affordable Modification Program-certified.
Banc of Manhattan is warning investors that "no fade bids" will be accepted. "Subsequent value fades will not be accepted unless there is a severe material issue."
The auction firm hopes to settle the deal by the end of April.
Known for subprime financing, the sponsor has been making inroads lending to near-prime customers in the last couple of years.
Spreads ranging from 16-18 basis points over the three-month, interpolated yield curve on the P1 (Moody's) and F1+ (Fitch) notes, to 160 to 170 over the benchmark on the class D notes.
Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
Broken down by product type, the agency's NJCLASS Standard Fixed product should account for a large majority of the loans, 75.4%. NJCLASS Consolidation will account for the next-largest group, 14.1%.
Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
The notes will price against Treasurys, with spreads expected to fall between 85 and 90 basis points over the benchmark.
