Two Harbors will issue its third RMBS this year via the Agate Bay Mortgage Trust, according to DBRS.
The deal, Agate Bay Mortgage Trust 2014-3, offers $356 million of securities that are backed by a pool of 30-year, fixed-rated residential mortgage loans.
Most of the pool (98.9%) is comprised of loans that are subject to the QM and ability to repay rules issued by the Bureau of Consumer Financial Protection (CFPB) as part of the Dodd-Frank Act. These loans are designated as QM Safe Harbor, which mitigates future litigation risk and provides a level of assurance that they are better insulated from claims and defenses by borrowers. The rest of the pool is not subject to the rule.
Loans in the pool were originated by Mortgage Master, NYCB Mortgage Company, George Mason Mortgage, W.J. Bradley Mortgage Capital, Prospect Mortgage, United Shore Financial Services, Commerce Mortgage , Cobalt Mortgage and Parkside Lending.
The loans will be serviced by Cenlar FSB and Wells Fargo Bank will act as the Master Servicer.
The issuer completed a $260 million deal in early August and a $366 million deal in September. The deal joins a growing pipeline of residential mortgage securities. Last week two new jumbo deals were announced: $262 million JPMMT 2014-5 and $207 million CMLTI 2014-J2.
Like the Agate Bay securitization, the deals are backed by pools of prime quality, fixed-rate mortgages.