The notes are backed by 3,761 residential mortgages with a weighted average seasoning of 54.16 months and a weighted average original LTV of 57.14%.
The $425.6 million Structured Agency Credit Risk 2015-HQ2 offloads the credit risk on $30.3 billion of mortgages acquired by Freddie between January and September 2013.
Mortgage bankers facing new demands on their businesses are becoming increasingly interested in new sources of liquidity, particularly through mortgage servicing rights financing vehicles.
Borrowers are slightly weaker than those in deals recently rated by Kroll, though still relatively strong; leverage is also slightly higher, and 11.5% of loans have 10-year interest-only periods.
A portfolio of two loan groups backs the securitization called Towd Point Mortgage Trust 2015-2. One pools approximately 3,121 loans with a balance of $715 million; the other pools 1,289 loans with a balance of $243 million.
Regulation AB governs registration, reporting and disclosure requirements for all things asset-backed. The Securities and Exchange Commission appears to be ready to update it significantly, but, nearly four years after changes were originally proposed, its not clear exactly what the Commission will do.
Concern is mounting among investors and analysts that Nationstar, Ocwen Financial and Walter Investment are getting so big so quickly that they are becoming too difficult to manage.
The proposal would introduce dissemination of trade prices for securities ranging from highly liquid credit card and auto ABS to smaller and more esoteric deals in asset classes such as time shares, to commercial mortgage-backed securities (CMBS) and highly structured CDOs and collateralized loan obligations.
Overall issuance growth will moderate in 2014, Fitch Ratings' managing director for asset backed securities says in the firm's outlook.
The servicer has a reputation for aggressively writing down principal, often multiple times.
Firm: 3i Debt Management
It's one of the biggest regulatory hurdles the market has faced since the financial crisis, and promises to bring wholesale changes to the structures of transactions as well as to the business models of managers. Clifford Chance partner Steven Kolyer weighs in.Current Issue