Nearly $3 billion in jumbo residential mortgage-backed securities are being issued with an unusually tight range of weighted-average coupons. One of the deals has a low WAC despite weaker credit risk characteristics, but most of the issuances have typical metrics.
Home Equity Rates
Interest Rates, Yields and Weighted-Average Coupons
🔒Figure HELOC Deal Features Low WAC, Tight CLTV
Home-equity lines of credit being securitized by Figure Lending LLC carry a low weighted-average coupon, slightly elevated debt-to-income ratios and low combined loan-to-value ratios.
HELOC Delinquency Down, CES Credit Risk Improves
Delinquency on home-equity lines of credit saw a marked improvement last month, while borrower credit profiles strengthened on closed-end second mortgages.
🔒High WAC, CA Concentration on Deephaven CES RMBS
Residential mortgage-backed securities heavy with closed-end second mortgages from Deephaven Mortgage LLC and a majority mortgage broker originations are being prepared for issuance. The weighted-average coupon sits 48 basis points above other CES transactions tracked this quarter, reflecting unusually elevated underlying note rates.
🔒Varied WACs on Trio of CES RMBS as Rocket Deal Expands
Three residential mortgage-backed securities transactions containing more than $1.3 billion in closed-end second mortgages have finalized, including an issuance from Rocket Mortgage LLC that was boosted by $125 million from initial projections. Weighted-average coupons differed notably across the transactions.
🔒2025 Non-QM Issuance Tops $30B as 2 Big Deals Close
Non-qualified mortgages originated by CrossCountry Mortgage LLC with a higher weighted-average coupon are included in an upcoming securitization. A recently closed transaction from the J.P. Morgan Mortgage Trust NQM shelf weighs in at over $800 million, while another deal from the OBX 2025-NQM shelf exceeds $700 million. More than $30 billion in non-QM issuances have been tracked so far this year.
Home Equity WACs Up Even as HELOC Coupons Sink from 2024
Note rates on both open- and closed-end home-equity loans packaged into new securitizations edged upward in October, with coupons climbing 23 basis points on home-equity lines of credit and increasing 15 BPS on closed-end second mortgages. Yet compared with last year, HELOC weighted-average coupons plunged 213 BPS, while CES coupons slipped 40 BPS.
CES Rates Down, HELOC Up as Fed Funds Target Cut
As the Federal Reserve’s Federal Open Market Committee cut its federal funds target, interest rates offered on closed-end second mortgages moved lower. But home-equity lines of credit saw an up tick, though one expert expects a decline ahead next month for HELOC borrowers. It was a tight race as banks, credit unions and independent mortgage bankers vied for the most competitive positioning.
🔒4 Jumbo RMBS Feature Rate, Rocket & UWM Loans
Loans originated by Guaranteed Rate Inc., Rocket Mortgage LLC and United Wholesale Mortgage LLC are included in four jumbo residential mortgage-backed securities transactions being issued for nearly $2 billion.
🔒Spring EQ Deal Lifts 2025 HELOC Issuance Above 2024
Home-equity lines of credit originated by Spring EQ LLC are being prepared for securitization in a deal that will lift 2025 issuance of open-end residential mortgage-backed securities past the volume for all of last year.
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