Tags: Shellpoint | mortgage | bond | delay

Ranieri's Shellpoint Cuts Size of Delayed Mortgage-Bond Offering

Thursday, 17 Oct 2013 02:18 PM

Shellpoint Partners LLC, the lender backed by mortgage-bond pioneer Lewis Ranieri, cut the size of its second sale of U.S. home-loan securities without government backing after delaying the transaction last month.

The bonds are now tied to $250.8 million of loans, Kroll Bond Rating Agency said today in an e-mailed statement. The issuer had earlier called for the deal to be backed by $308.6 million of loans, the credit grader said last month.

Kroll’s revised presale report didn’t reference loans to foreign nationals without credit scores, debt that had been cited as representing 1.2 percent of the pool in the previous report, signaling the mortgages were dropped to help draw investors. Eric Kaplan, a managing director for New York-based Shellpoint, declined to comment.

Shellpoint offered its first mortgage-backed securities in June after credit markets were roiled by mounting expectations the Federal Reserve would scale back its $85 billion of monthly bond purchases, and amid growing issuance of debt known as non-agency mortgage securities that challenged demand. The company restructured the initial transaction, and then offered higher relative yields to attract investors.

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