PR Mortgage Investment issues first-ever non-agency MBS

Home lending firm PR Mortgage Investment (PRMI) has issued a $479.3 million non-agency MBS deal, Inside Mortgage Finance reported Tuesday.

PRMI, a leveraged debt fund, has been actively purchasing residential mortgages and other assets since its inception in 2019. The Merchants Bank of Indiana, an active warehouse lender, provided the initial funding and credit facilities for the transaction.

According to Inside Mortgage, all of the loans in the MBS are conforming jumbos that were eligible for sale to Fannie Mae and Freddie Mac. The collateral backing the deal is all located in California, which seems to be a first for non-agency MBS issuance since 2010, according to Kroll Bond Rating Agency.

All of the loans in the MBS transaction were originated by Owning Corp, a direct-to-consumer lender acquired by Guaranteed Rate in February. The Orange, California-based company recently rebranded as Absolute Zero. Guaranteed Rate said in a statement that the addition of Owning builds on the expansion of its consumer direct business.