S&P: Private-label RMBS may hit $15 billion in 2013

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Total private-label residential mortgage-backed securitized issuance is about $6 billion this year, compared with $2.8 billion from 2011, according to Standard & Poor’s ratings service. 

While new issue private-label RMBS market activity remains subdued, it is expected to increase to $15 billion next year.

"Agency issuance continues to dominate the market, but several issuers are accumulating collateral," according to industry reports.

Year-to-date, two issuers securitized new private-label originations and one has securitized seasoned loans.

One of the issuers is Credit Suisse ($29.27 0.09%) [3], which priced its third private-label residential mortgage-backed securitization of the year on Nov. 30 [4].

The deal securitizes prime, jumbo mortgages purchased as part of a mortgage portfolio acquired for structured finance purposes by subsidiary DLJ Mortgage Capital.

The other issuer is Redwood Trust ($20.33 0%) [5], which priced its sixth RMBS deal of the year on Nov. 13 [6]. The deal is expected to close in the fourth quarter.

First Republic Bank mortgages make up the majority of the transaction, or roughly 12.5% of the loan pool.

Other originators include Fremont Bank, Prime Lending, Flagstar Bank, Shore Financial Services, Cornerstone Mortgage Co., and WJ Bradley Mortgage Capital, according to Fitch Ratings. 

cmlynski@housingwire.com [7]