Originations from a new jumbo product are being aggregated for private-label securitizations.
Three years after it was launched in 2008 by subprime mortgage veteran Jerry Schiano, New Penn Financial LLC agreed to be acquired by Shellpoint Partners LLC. Shellpoint is a venture created between New Penn’s management and Ranieri Partners, which was founded by mortgage-backed securities legend Lewis S. Ranieri.
Within a month of the acquisition announcement, New Penn launched the “core product series” — programs targeting borrowers with strong credit, disposable income and significant reserves who don’t qualify for agency loans. Mortgages closed under the program could be as high as $2 million and have loan-to-value ratios as high as 85 percent.
New Penn, which says it now operates 30 branches and is licensed in 47 states, disclosed last month that a shelf registration had been filed with the Securities and Exchange Commission for its newly-formed depositor, Shellpoint Mortgage Acceptance LLC. The new entity, dubbed “Shelly Mac,” will issue residential MBS.
On Wednesday, the Plymouth Meeting, Pa.-based company announced the addition of its Shellpoint Select jumbo mortgage to its product portfolio.
The new jumbo program, which New Penn claims has faster turn-around times, can be used to finance the purchase of owner-occupied properties or for owner-occupied refinances.
The fixed-rate product is available with 15- or 30-year terms. The maximum loan amount is $1 million.
“New Penn Financial has recognized the void left by many lenders who abandoned jumbo products as well as the need in the marketplace for very competitive rates and fast turnaround times,” the statement said. “The new mortgage delivers those benefits to qualified borrowers across the country who want to finance more expensive homes.”
The “prime quality” non-agency mortgages will be securitized through Shellpoint Partners, today’s statement said.
“The return of private capital should provide an enormous boost to the U.S. housing market,” Shellpoint Co-CEO Bruce Williams said in the news release.
