The pandemic, stellar vacation-home sales and regulatory turbulence combined in 2021 to spark a boom in private-label securitizations backed by mortgages on second homes and investment properties.
A total of 37 such deals were completed through October of this year involving more than 51,000 mortgages on properties that were not a primary residence (in other words, second homes and investment properties), according to HousingWire’s analysis of private-label securitization deals over the period. The mortgages used as collateral were valued in aggregate at $15.2 billion as of the closing of the transactions.
The mortgage-collateral volume and total deal count in 2021 dwarfs even the combined totals from the prior two years:
- 2020 — 12 deals involving 13,300 loans valued at $3.9 billion.
- 2019 — 15 deals involving 17,492 mortgages valued at $5.4 billion.
The analysis is based on an examination of data supplied by the Kroll Bond Rating Agency covering more than 160 private-label residential mortgage-backed security (RMBS) issuances over the first 10 months of this year.
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The pandemic, stellar vacation-home sales and regulatory turbulence combined in 2021 to spark a boom in private-label securitizations backed by mortgages on second homes and investment properties. A total of 37 such deals were completed through October of this year involving more than 51,000 mortgages on properties that were not a primary residence (in other words, second homes and investment properties), according to HousingWire’s analysis of private-label securitization deals over the period. The mortgages used as collateral were valued in aggregate at $15.2 billion as of the closing of the transactions. The mortgage-collateral volume and total deal count in 2021 dwarfs even the combined totals from the prior two years: 2020 — 12 deals involving 13,300 loans valued at $3.9 billion.2019 — 15 deals involving 17,492 mortgages valued at $5.4 billion. The analysis is based on an examination of data supplied by the Kroll Bond Rating Agency covering more than 160 private-label residential mortgage-backed security (RMBS) issuances over the first 10 months of this year. This content is exclusively for HW+ members. Start an HW+ Membership now for less than $1 a day. Your HW+ Membership includes: Unlimited access to HW+ articles and analysis Exclusive access to the HW+ Slack community and virtual events HousingWire Magazine delivered to your home or office Become a member todayAlready a member? log in