Two Harbors Investment Corp. said it is closing on a warehouse facility in partnership with Barclays Bank to aggregate loans for issuance into new Jumbo RMBS, making it the second REIT in this space since the downturn.
Diane Wold, previously a senior vice president at GMAC Residential Capital Corp. who led the private label mortgage securitization program there, has been named managing director at Two Harbors in conjunction with the effort.
So far the company has a $100 million mortgage warehouse facility that could be increased in the future. It will be used to aggregate prime Jumbo residential mortgages that the company will acquire from select originators.
Two Harbors said these originators would be partners with whom it has chosen to build “strategic relationships” and that some of these originators have a nationwide presence.
The company said it is targeting a $250 million deal size for its initial securitization with Barclays Capital acting as an underwriter.
On her hiring as a managing director at Two Harbors, Wold said: “I am very excited to join Two Harbors at a time that presents great opportunities for building a strong loan securitization platform”
Previously a senior vice president and managing director at GMAC ResCap, she led the company’s U.S. residential mortgage loan securitization program as part of her 16-year career at the firm. During her time at GMAC ResCap, Wold oversaw the securitization of around $400 billion of residential mortgage loans, with most of the issuance being backed by prime Jumbo collateral. At different points in her career, she was responsible for managing all aspects of the securitization program such as ongoing bond reporting and investor relations functions.
Wold is among the founding members and is currently on the advisory board of the American Securitization Forum.
“We are thrilled to have someone of Diane’s background and caliber join the Two Harbors team,” said Thomas Siering, Two Harbors president and CEO. “Her experience aids in the efficient integration of the loan securitization program into our business model. It also allows for further initiatives.”
“The private mortgage securitization market is beginning to re-open and we believe there will be increasing demand for mortgage investment products that are well designed, backed by high quality collateral, and transparent in their disclosures," Wold said. "Our initial focus will be on jumbo loan securitizations, where we believe there is a significant opportunity.”