Shellpoint Partners, the home lender founded by mortgage-bond pioneer Lewis Ranieri, is close to pricing its first securitization, according to a a person familiar with the deal.
DBRS, Fitch Ratings and Kroll Bond Ratings are rating the transaction, this person said. The three agencies did not return a request for comment as of press time.
Moody’s Investors Service is understood to not be rating the deal. A spokesperson from Standard & Poor's declined to comment.
This debut transaction off of Shellpoint's shelf registrationis reportedly about $250 million, with Credit Suisse as the arranger, according to Bloomberg. A Credit Suisse spokesperson did not return a request for comment.
On May 8th, Shellpoint Partners released a statement saying that it would issue private label mortgage-backeds via its unit Shellpoint Mortgage Acceptance, known in shorthand as “Shelly Mac.”
The shelf has an initial ceiling of $2 billion in issuance. “We intend to be a significant issuer of new issue RMBS and help define the new market standards and practices that will restore a healthy housing market as one of the vital cornerstones of the economy,” said Co-CEO Saul Sanders.
The originator for the loans is Shellpoint subsidiary New Penn Financial, which lends to borrowers in 47 states, including Washington D.C.
Ranieri is Shellpoint’s chairman of the board. Considered a pioneer in structured finance, he loomed large in the bestseller Liar’s Poker, Michael Lewis’s first-hand account of bond trading in the heady late 80s.