Two Harbors Investment Corp. is preparing yet up another securitization of fixed-rate, 30-year jumbo mortgages to borrowers with strong credit, according to Kroll Bond Rating Agency and Fitch Ratings.
The $310 million of loans backing Agate Bay Mortgage Trust 2015-6 have significant borrower equity; the weighted average combined loan-to-value ratio of 65, providing a margin of safety against potential declines in home prices.
The credit quality of the borrowers is also strong: the weighted average credit scores is 773. The average amount of liquid reserves is slightly higher for this pool relative to other recent transactions with comparable profiles, according to Fitch, with over 33% of the borrowers having reserves in excess of 30% of their mortgage amount.
Furthermore, all of the loans meet the criteria for “Qualified Mortgages” giving originators a legal safe harbor from ability to repay rules.
The top three contributing originators, NYCB Mortgage Company, George Mason Mortgage, and Parkside Lending, account for 38.5% of the outstanding balance. All loans will be serviced by Cenlar, FSB. Wells Fargo Bank, will act as master servicer for the transaction
Kroll and Fitch both assigned triple-A ratings to the senior trances of notes to be issued by the deal.