Two Harbors Investment Corp made a quick turnaround from its early September transaction and is back marketing another $334.7 million of bonds backed by residential mortgages.
Fitch Ratings and Kroll Bond Rating Agency assigned preliminary triple-A ratings to the senior notes offered under Agate Bay Mortgage Trust 2015-7.
The collateral pool consists of 30-year fixed rate loans that have significant borrower equity; the weighted average combined loan-to-value ratio of 67.2%, 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. Although the average amount of liquid reserves is slightly lower for this pool relative to the recent Agate Bay transaction, according to Fitch, 29% of the borrowers still have reserves in excess of 30% of their mortgage amount.
Additionally, all of the loans meet the criteria for “Qualified Mortgages” giving originators a legal safe harbor from ability to repay rules.
JP Morgan Securities and Wells Fargo Securities are the lead managers.
ABMT 2015-7 is the 11th deal sponsored by Two Harbors, which established its mortgage aggregation platform in 2011.