A reading of the recent SEC filing by Shellpoint Partners on its first nonconforming MBS reveals that it will accept residential loans facilitated by loan brokers and correspondents.
Shellpoint also will securitize FHA- and VA-backed mortgages but will not include Fannie Mae and Freddie Mac loans in its MBS. Nonperforming mortgages also will be avoided, according to its initial shelf registration.
Additionally, mortgages with prepayment penalties will be accepted as will cash-out refinancings. But each loan that goes into a Shellpoint MBS will be considered a ‘full doc’ mortgage.
Earlier this week Shellpoint filed a shelf registration with the Securities and Exchange Commission to issue nonagency mortgage-backed securities. Presently, the only other firm active in the nonconforming space is
The loans will be originated by
