Residential Credit Solutions issues $110 million unrated RMBS
Fort Worth-based Residential Credit Solutions said it is issuing a $110 million securitization platform. The new securitization is titled Residential Credit Solutions Trust 2011-1 and is collateralized with 46% current mortgage loans and 44% delinquent mortgages, according to an email from Rudy Orman, RCS director and senior vice president of Business Development and formerly of Marathon Asset Management. Orman joined RCS last year. Bank of America Merrill Lynch (BAC) is the underwriter for the nonrated senior and subordinated structure. RCS will service the underlying mortgage loans. The deal priced at undisclosed terms to a large investor, Orman said, adding that he is keeping all options open for future deals in the secondary market. "We would like to do more of these, it creates liquidity," Orman said. "But we're taking baby steps as the market slowly turns around." Orman said the deal was too small to warrant a rating, although the option was discussed prior to issuance, and a credit ratings agency was willing to provide the service. In 2009, RCS successfully bid for about half of the assets of Franklin Bank, after it was closed by the Federal Deposit Insurance Corp. The FDIC itself securitized some of the Franklin assets, with RCS as the servicer. None of the assets used in the RMBS are from the FDIC. RCS is a high-touch special servicer, approved with HUD, Fannie Mae and Freddie Mac, the email said. Some of the assets in Residential Credit Solutions Trust 2011-1 are classified as real-estate owned. Write to Jacob Gaffney. Follow him on Twitter @JacobGaffney.