RMBS

Fitch may use a new Structured Finance Association framework aimed at prioritizing only riskier TRID errors to assign grades to loans sold into residential mortgage-backed securities, reducing rating-related compliance burdens.

Freddie Mac launched a groundbreaking multifamily structured pass-through deal that includes a class of floating rate bonds indexed to the Secured Overnight Financing Rate for the first time ever.

The two deals continue a late-year surge of private-label RMBS deal volume totaling $8.37 billion priced since Oct. 1.

Nationstar’s next securitization of defaulted or inactive home equity conversion mortgages will have a higher-than-average exposure to properties with steep leverage, as well as ties to judicial foreclosure states.

Lenders have bundled more than $18 billion worth of non-QM, private-label loans into bonds this year that they then sold to investors, a 44% increase from 2018 and the most for any year since the securities became common post-crisis.

Sixty percent of the loans were underwritten with just 12- or 24-month bank statements, according to ratings agency reports.

The portfolio of residential mortgage-backed, pass-through securities within the upcoming deal, TORRENS 2019-2, is considered prime but will have to rely on a number of credit supports to counteract some weaknesses in the underlying loans.

Triton Trust No.8 is issuing approximately A$500 million in pass-through securities backed by prime residential mortgages in Australia, with a substantial amount of loans that are made to investors, 40.4%, according to an S&P Global presale report.

The loans underlying the $465 million securitization that OBX 2019-EXP3 Trust is launching will provide a test of the market’s willingness to accept concentration risk in a high-quality pool of mortgages.

First-lien, prime residential mortgages are securing the Visio 2019-2 Trust, which will raise $202,682,000 from the market, and which has collateral that was funded by the Mortgage Pass-Through Notes, Series 2019.