Ranieri-Backed Shellpoint Planning Its First RMBS Since 2013

Shellpoint Partners is preparing to issue its first private-label residential mortgage-backed security since walking away from its last deal in 2013.

The deal, Shellpoint Co-Originator Trust 2015-1, is comprised of fixed-rate, first-lien, prime quality residential mortgages. The securitization includes loans from Shellpoint's lending subsidiary, New Penn Financial, and Bank of America's whole loan aggregation program, according to a Moody's Investors Service presale report.

The bonds are backed by 343 loans with a total principal balance of roughly $269 million, credit rating agency DBRS found in its preliminary ratings report.

Shellpoint last came to market as an issuer in 2013, according to DBRS spokesman Stephen Bernard. The company, which has ties to MBS pioneer Lewis Ranieri, completed a single securitization that year.

The issuer had planned a second deal in 2013, but later canceled it in favor of whole loan sales. Shellpoint said the whole loan execution was more attractive at the time.

During Shellpoint's hiatus from issuing RMBS deals, its New Penn affiliate contributed jumbo mortgages to other conduit transactions, including a Credit Suisse deal earlier this year, according to DBRS.

The volume of new private-label jumbo RMBS issuances in 2015 is expected to surpass the annual totals of both 2013 and 2014, according to Fitch Ratings.