[1]Citigroup [2] is planning to issue a securitized bundle of reperforming residential mortgage loans totaling close to half a billion dollars from its Citigroup Mortgage Loan Trust (CMLT), according to credit ratings agency DBRS [3].
This bundle of loans, CMLT 2015-PS1, is the third securitization issued by Citigroup in 2015 and comes with an unpaid principal balance (UPB) of $421 million. While the first two included loans that had previously been modified or were in foreclosure, the latest securitization includes only loans that are reperforming, meaning they were seriously delinquent (90 days or more overdue) at one point but then payments were resumed by the borrower (although the payments that were missed may or may not have been made up).
The notes in the securitization have been place in two groups—one featuring adjustable-rate mortgages and one featuring fixed-rate. The first group includes 646 ARM loans with a UPB of $197.4 million that are due in 2048, and the second group includes 1,104 fixed-rate loans with a UPB of $236.6 million that are due in 2042.
The loans backing the two groups in CMLT 2015-PS1 are all 100 percent current, and most of them have been current for the past 36 months. None of them have been delinquent in the past 24 months, and none of them have ever been in foreclosure or have been modified.
When contacted by DS News, a Citigroup spokesman had no comment on the securitization being issued.
Citigroup reported in mid-October [4] that its Citi Holdings segment reported e decline in net income of 81 percent from Q2 to Q3, from $212 million to $31 million. Citi Holdings also reported a decline in net credit losses of 46 percent down to $218 million, reflecting “continued improvement in the North America mortgage portfolio as well as the impact of divestiture activity.”