Transaction is scheduled to close on May 23
Verus Mortgage Capital has started preparing an RMBS transaction of non-qualified mortgages (non-QMs) and loans on investment properties valued at $606.4 million.
Scheduled to close on May 23, the securitization deal is backed by mortgage loans originated by various originators and acquired by the sellers, according to a pre-sale report from Fitch Ratings. The loan pool predominantly consists of non-QMs (55.8%) and loans designated for investment properties (38.5%), and underlying collateral includes a mix of fixed- and adjustable-rate mortgages and interest-only products.
“Approximately 1.4% of the loans have experienced a delinquency within the past 24 months, and none of the loans are currently delinquent; 1.6% of the loans in the pool were underwritten to foreign national borrowers,” Fitch wrote in the report. “The pool characteristics resemble recent non-prime collateral; therefore, the pool was analyzed using Fitch’s non-prime model.”
Read next: Verus Mortgage Capital issues 10th non-QM securitization
The loans in the transaction have seasoned for about seven months, and borrowers have a “relatively strong credit profile” with a 728 FICO score.
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