Stonegate Mortgages may be the newest name added to the prime RMBS pipeline in a sector of securitization that has seen volumes increased 2.7 times compared to the $3.6 billion issued in 2012, according to Deutsche Bank.
Post-crisis, non-agency jumbo RMBS origination has been dominated by Redwood Trust. However this year the market has seen issuance from Shellpoint Partners, Everbank, Credit Suisse and JP Morgan.
According to a Deutsche Bank report, new issuance growth in the first seven months of 2013 in RMBS has recorded an aggregate deal volume of $19.2 billion, a 132% increase compared to the whole year of 2012.
“Rising home prices and declining legacy private label RMBS along with strong investor appetite for high yield paper should continue to fuel the new securitization market,” said Deutsche Bank analysts in the report. “We expect new issuance in private RMBS securitization to maintain its momentum for the rest of the year and surpass the $20 billion deal size.”
Stonegate is at the moment, in registration to go public so could not comment on this story. According to its filing with the Securities and Exchange Commission, the company is one of the fastest growing non-bank mortgage originators.
The company's origination volume nearly quadrupled during the six months ended June 30.
Its loan originations are sourced mostly via its network of retail branches and relationships with 955 third-party originators. The company focuses on mortgage loans associated with the purchase of residential real estate, which represented 45% of its loan originations for the 12 months ended June 30, as opposed to the refinancing of existing mortgage loans.
For the six months ended June 30, Stonegate reported it originated $4 billion in loans. As of June 30, Stonegate mortgaged a portfolio with an unpaid principal balance of $7.6 billion.
Standard & Poor’s citing an Inside Mortgae Finance report, said that Stonegate plans to issue an RMBS deal from its “newly created securitization platform” sometime later this year.
In July, the mortgage company hired Julianne Ilstrup as senior vice president of structured finance. She is in charge of setting up the company’s efforts to execute private and public securitizations.