Towd Point Mortgage Trust 2021-1 is preparing to issue $528.2 million in mortgage-backed securities (MBS) collateralized by a mortgage portfolio of 6,659 seasoned performing loans (SPLs) and re-performing loans (RPLs).
The deal is expected to close on Nov. 17, according to a pre-sale report from Fitch Ratings.
Loans for primary residential dwellings make up 93.4% of the portfolio; just under 85 % are single family/pud homes; 10.1% are multifamily/other; and 4.8 % are condos. The average balance is $79,325. In terms of geographical distribution, California is the state with the highest number (13.6%), with Florida coming in second. New York has the highest percentage, 11.2 %, for a metropolitan area, and Los Angeles and Miami’ are second and third, respectively.
The average FICO score for borrowers is 689.
-
Borrowers on the underlying loans in PMT Loan Trust 2021-INV1 have a weighted average (WA) original credit score of 778, plus a WA debt-to-income ratio of 34.6%.
October 19 -
While overall volume was down in August, it remained historically strong, particularly in the securitized market for home equity withdrawal loans made to borrowers age 62 and up.
September 9 -
A strong housing market and a willingness of borrowers to tap home equity lines, is benefiting non-QM loans.
August 11
Based on Fitch’s treatment of coronavirus forbearance and deferral loans, about 73.4 % of the loans were treated as having clean payment histories for the past two years, while 22.4% of the loans are “dirty current” loans with recent delinquencies or incomplete 24-month pay strings, the report said. About 56% have been modified, according to the report.
FirstKey Mortgage, LLC, a private-label securitization and asset management firm, is sponsoring the transaction, with Towd Point Mortgage Trust 2021-1 as the issuer. J.P Morgan Securities is the lead underwriter.
Fitch highlighted that the home price value in the pool is 10.1 % above a long-term sustainable level, courtesy of an influx of new buyers, low inventory and low mortgage rates.
Fitch said Towd Point Mortgage Trust offers low operational risk because FirstKey has a good track record in RPL activities and an ‘above average’ aggregator assessment from the rating agency.
Of the pool, 5.8% consists of adjustable-rate loans that reference one-month, six-month or one-year U.S. dollar LIBOR plus a spread, according to the Fitch report.
Fitch expects to assign ‘AAA’ ratings to the $357.04 million tranche; ‘AA’ to a $39.79 million piece; ‘A’ to a $24.8 million portion, and ‘BBB’ to a $19.64 piece. Final maturity for the securities is 2061.
