New Residential Mortgage priced $504 million of bonds backed by a pool of mostly reperforming residential mortgages, according to Standard & Poor's.

The 3.6-year, AAA rated, class A-3 tranche priced at a spread of 150 basis points over interpolated swaps, yielding 2.86%.

Nationstar Mortgage is the servicer and master servicer for the transaction, called NRMLT 2014-3. Citibank is the owner trustee and paying agent, and is responsible for advancing delinquent principal and interest to the trust in the event the master servicer is financially unable to make advances.

S&P said that the mortgage pool's seasoning of more than 10 years, "demonstrates the borrowers' ability and willingness to make payments." However, a portion (4.3%) of the loans in the pool are currently 30 days delinquent on their principal and interest payments, 17.2% of the loans were 30 or 60 days delinquent, and 5.1% were 90-plus days delinquent at some point during the 12 months before the cutoff date.

"Whereas we assess lower loss expectations for loans with significant seasoning, we do not give such benefits to loans that were 90-plus days delinquent in the last 12 months," the ratings agency stated in its presale report.

The loans have a weighted average FICO of 701 and a weighted average loan-to-value ratio of 70%, in line with the last transactions issued by New Residential, NRMLT 2014-2.

 

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