Shellpoint, the home lender founded by mortgage-bond pioneer Lewis Ranieri, removed loans made to foreign nationals from its RMBS deal dubbed Shellpoint Asset Funding Trust 2013-2.
The deal was first announced in September. The collateral pool and structure for its second RMBS deal now includes 345 first-lien mortgage loans with an aggregate principal balance of $250,846,001 as of the cut-off date.
Originally the collateral pool included 431 first-lien mortgage loans with an aggregate principal balance of $308,637,045 as of the cut-off date; 1.2% of the loans were originated to foreign nationals with no credit score, according to Kroll Bond Rating Agency.
In June, Shellpoint restructured its first RMBS deal, Shellpoint Asset Funding Trust 2013-1, on the back of investor requests. Market reports indicated that investors were looking for extra credit support to mitigate concerns over loans originated for foreign borrowers.
The structure was split into a super senior and support senior note structure, where the credit enhancement on the super senior was 20% and the support on the A3 was 10.10%.
Foreign national assets in U.S. RMBS deals aren’t a new thing. Redwood Trust for example allows for these assets to be included in their RMBS mortgage pools but at a smaller percentage; and those borrowers included do have credit scores.
