UBS is slated to launch its first multi-seller home equity transaction off of its MASTR dealer shelf this week, sources said. The $650 million transaction marks the onset of its multi-seller program, a program designed to leverage the firm's whole loan sales force and draw on a larger base of smaller lenders.
Going forward, UBS plans on bringing at least one multi-seller offering per quarter, depending on the program's success. Deals will likely range from $500 million to $750 million, and will be comprised of loans from multiple sellers. All future multi-seller transactions will trade off of the MASTR shelf with an HE mnemonic.
In addition to collateral purchased from UBS' previously established relationships, the first MASTR HE deal will include loans from several new originators, it was added.
By putting these smaller loan packages into deals with more stringent underwriting criteria, the firm intends to attract investors with a more diversified offering and greater liquidity.
To date this year, UBS has completed four single-seller transactions backed by loans originated by Option One Mortgage, WMC Mortgage and Fremont totaling roughly $2.5 billion. The most recent transaction was a $590 million series 2004-WMC2 transaction, which priced in June.
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