The non-QM RMBS deal was priced at $755.6 million
Verus Mortgage Capital, one of the largest non-QM correspondent lenders, has issued a new securitization deal backed by non-qualified mortgages.
Verus last week completed its 10th non-QM RMBS transaction in 2022, sized at $755.6 million. The securitization included a total of 1,268 loans – most of which (10%) were contributed by FM Home Loans. The loan pool has seasoned for an average of 14 months.
In a pre-sale report, S&P Global Ratings noted that 27 loans are 30-50 days delinquent. “These loans have a weighted average FICO of 636, which is lower than the pool average FICO of 736,” the rating agency wrote in the report. “Delinquency adjustments supplement FICO scores.
“There are 115 loans (15.6% by balance) that have 40-year terms to maturity, one of which is a 40-year fully amortizing fixed-rate loan and the remaining loans have 10-year interest-only features with subsequent 30-year amortizations. We view the longer term to maturity to be a weaker loan attribute compared to loans with shorter terms to maturity, and therefore increased our loss coverages for these loans by applying an adjustment to the foreclosure frequencies.”
NewRez (dba Shellpoint Mortgage Servicing) served as the transaction’s primary servicer, while Nationstar Mortgage (dba Mr. Cooper Servicing) was the master servicer.
Verus is a full-service correspondent lender predominantly focused on residential non-QM loan aggregation and securitization. It purchases mortgages in all 50 states, and its offerings include LTVs up to 90%, cash out up to $500,000, full and alternative documentation, and foreign national.
