Oceanview Mortgage Trust is preparing to issue $ 496.6 million in debt backed by a pool of 551 top-rated jumbo residential mortgages.
Wells Fargo Securities and Stifel Nicolaus will be the initial buyers of the Notes in the Residential Mortgage Backed Securities (RMBS) transaction. According to the Kroll Bond Rating Agency, which expects the bonds to be rated, the transaction uses a senior, shifting interest capital structure.
As of October 1, the collateral pool's cut-off date, all underlying loans in the pool were non-qualifying mortgages, according to the Kroll Bond Rating Agency. Also, the entire pool consists of fixed rate, fully amortizing mortgages with an average balance of $ 901,373. They are also senior loans.
Borrowers are highly qualified for the high priced home loans with an annual income of approximately $ 361,223. Only 17.7% of borrowers earned their income from self-employment. The borrower pool also has a weighted average credit score of 777; a weighted average original loan-to-value ratio of 68.5%; and a WA Debt-To-Income Ratio (DTI) of 30.8%.
The vast majority of loans, 93.0%, are owner-occupiers, with the remainder being second homes. Purchases account for 52.8% of the pool, while 33.6% of borrowing is used to refinance home loans; and 13.6% of the funds raised were disbursements.
The Weighted Average Coupon (WAC) of the Notes is 3.17%.
With a WA loan age of just 3.9 months, all loans in the pool were clean and up-to-date, according to KBRA.
Geographically, western home loans dominate the portfolio, with California accounting for 27.2% of the pool's balance; Texas represents 11.3%; and Washington made up 8.8%. After major cities, Los Angeles has the highest share of the pool balance with 8.0%, followed by Seattle, Washington with 7.7% and 6.9% for San Francisco.
KBRA expects to assign the ratings “AAA” to classes A-6 to A-1022. The rating agency also expects ratings from “AA” to “B +” for the subordinate classes B-1 to B-5.