RMBS

Under Home Partners Holdings’ right to purchase (RTP) program, RTP prices exceed purchase valuations by about $33.2 million, and on 817 properties.

Credit enhancement includes subordination, shored up by excess spread generated from excess spread between the cash flow on the collateral and the certificates.

The pool includes a high concentration of loans originated through alternative underwriting, and on investment properties. Just 10.3% of the pool received COVID forbearance.

All of the loans are non-prime loans, and this is the first transaction that BREDS will sponsor using the BINOM shelf.

The collateral pools consists of 578 loans, and the trust uses a senior-subordinate, shifting-interest structure that helps maintain a longer subordination period.

The deal also provides a sequential principal distribution to all of the certificates at all times, unlike recent non-prime securitizations.

Relatively tight pricing is expected on Citigroup Mortgage Trust 2021-INV2, although the coupons are expected to range from 0.49% to 3.0%.

A pool of high-quality mortgages is securing Flagstar 2021-7. None of the loans had been subject to a coronavirus-related forbearance plan by the cutoff date.

Expanded prime and non-prime mortgages underpin the pool in the deal, issuing $459.8 million in notes.

Market conditions suggest that the SFR has positive forward momentum, with a healthy stream of deals in the securitization pipeline through the end of 2021.