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 (CS), which priced its third private-label residential mortgage-backed securitization of the year on Nov. 30.
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 (RWT), which priced its sixth RMBS deal of the year on Nov. 13. 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.
