Potential investors of residential assets have the opportunity to make competitive bids on a portfolio of nearly a thousand closed home-equity lines of credit.
The portfolio includes first-lien HELOCs with mostly monthly adjustable rates.
Many of the lines have been frozen, and no additional draws are available.
The loans were originated in the early 2000s through wholesale and retail channels using “very high underwriting” standards and excluding subprime loans.
Mortgage Industry Advisory Corp. announced the offering.
“The goal is to sell $100mm at the best execution,” the offering states. “With the right bid, the entire pool is for sale.”
Around 60 percent of the loans are London Interbank Offered Rate
ARMs, and 40 percent are prime-indexed loans. The margin is as high as 500 basis points.
Performing loans make up 79 percent of the portfolio, while 10 percent are re-performing and nine percent are non-performing.
The rest of the mortgages are either piggy-back seconds, stand-alone seconds or lot loans.
On the performing loans, the gross weighted-average coupon is somewhere 2.90 percent to 2.99 percent with updated interest rates.
MIAC noted that an increase in rate is likely “with the only adjust being higher as the market has been at the floor.”
According to MIAC, the seller is a “very large foreign bank.”
Interested bidders can contact Brendan Teely at
212.233.1250 x281 or [email protected].
