Specialty finance company Shellpoint Partners, filed a shelf registration with the Securities & Exchange Commission to allow for the issuance of nonagency residential mortgage-backed securities.
The company, also known as Shelly Mac, will originate private mortgages for securitization via its subsidiary New Penn Financial.
The chairman of Shellpoint's Board of Directors is Lewis S. Ranieri, a securitization pioneer and chairman of Ranieri Partners, which has interests in a variety of real estate-related platforms and is a part-owner of Shellpoint.
"One of Shellpoint's strategies is to increase the financing options for prime quality borrowers who do not fit within agency underwriting guidelines," the company said in a statement.
Such filings are expected to grow more commonplace as the need for private financing in housing grows. Currently there is only one real player in the game, Redwood Trust, which is looking to price its fifth RMBS this year. The Redwood loans, it should be noted, are originated by mortgage lenders. In the case of Shellpoint, the mortgages would be originated in-house by New Penn.
Demand for private-label RMBS is also growing due to the low supply of fresh paper and the huge buying presence of the Federal government in the Fannie Mae, Freddie Mac and Ginnie Mae space.
"At present, Shellpoint expects to securitize only prime-quality non-agency loans originated by New Penn Financial, rather than sourcing loans to securitize through bulk loan purchases from third-party originators," the company said.
"Shellpoint and New Penn Financial are excited to announce this important step in the non-agency securitization process," said Bruce Williams, co-CEO of Shellpoint commented, "housing is a vital part of the national economy and it needs private capital to return to a state of health."