Shellpoint Partners turns securitization deal into whole loan sale
New York-based Shellpoint Partners, a finance company focused on the residential mortgage market, is withdrawing its Shellpoint Asset Funding Trust 2013-2 securitization deal from the market in favor of selling the underlying whole loans, the company said.
The company intends to continue its efforts in the non-agency market and plans to monitor the secondary markets as they evolve.
"This is not a decision we’re undertaking lightly,"said Bob Magee, Chief Investment Officer of Shellpoint, "but at some point we can’t ignore best execution. The current RMBS bid is not competitive with the whole loan bid, even accounting for the qualitative cost of pausing our RMBS program. There is a substantial pricing disconnect between the whole loan and new issue RMBS secondary markets. We went very far down the road on SAFT 2013-2 – in fact we planned to close next week – hoping that the disconnect would ease, but the realities of the current market are clear."