Invictus Capital Partners’ 22nd residential mortgage-backed securities offering will be an amalgam of investor and owner-occupied mortgage loans, all highly seasoned and culled from other Invictus MBS deals.
According to presale reports, Verus Securitization Trust 2021-R1 is the latest nonagency MBS deal sponsored by the firm, pooling $635.6 million across 1,664 loans acquired by Invictus.
The loans include prime and nonprime loans, all of which are non-qualified under the Consumer Financial Protection Bureau’s ability-to-repay rule — either due to age or their status as business-purpose loans, which are not underwritten to borrower’s credit files.
Invictus acquires and securitizes primarily nonagency loans.
The weighted average seasoning is 34 months, well above that of prior Invictus-sponsored deals on the Verus shelf that are typically new originations under 10 months.
According to ratings agency presale reports, 444 of the loans (26.7% of the pool balance) have borrowers who were granted forbearance of up to six months or received deferment due to the outbreak of COVID-19. Of those, borrowers on 226 of the loans have completed forbearance plans; 213 have since returned to current status making full monthly payments.
Both DBRS Morningstar and S&P Global Ratings have issued preliminary AAA ratings on the senior Class A-1 notes tranche totaling $465.6 million.
Nearly 30% of the loans were originated by Sprout Mortgage Corp. Approximately 79.4% of the loans are serviced by NewRez (Shellpoint Mortgage Servicing) and the remaining 20.6% by Specialized Loan Servicing.
About 1,100 of the loans are backed by 1,172 properties (45.4% of the pool balance that are investor loans). In 2019 and 2020, Invictus sponsored five MBS transactions made exclusively on investor-property mortgages.
