Shellpoint Partners' RMBS structure will accept loans facilitated by loan brokers and correspondents.
Shellpoint filed a shelf registration statement with the Securities and Exchange Commission to issue private label RMBS on Monday.
The company said in press release that it planned to increase its non-agency mortgage origination for quality borrowers that do not fit within agency mortgage underwriting guidelines. It will originate the loans that will be securitized through its wholly-owned subsidiary, New Penn Financial, LLC, the Plymouth Meeting, PA, based originator of agency, government and prime-quality non-agency residential mortgage loans.
A closer look at the SEC filing shows that the company also plans to securitize FHA- and VA-backed mortgages but will not include Fannie Mae and Freddie Mac loans in its MBS. Nonperforming mortgages also will be avoided, according to its initial shelf registration.
Additionally, mortgages with prepayment penalties will be accepted as will cash-out refinancings. But each loan that goes into a Shellpoint MBS will be considered a ‘full doc’ mortgage. Lew Ranieri, one of the co-inventors of the MBS, is chairman of Shellpoint's board.