Long Run Partners enters securitization market with first non-QM MBS deal

Long Run Partners is preparing to enter the non-QM market with a mortgage-backed securities (MBS) deal secured by a pool made up of non-QM loans.

The non-QM investor aims to raise $331.5 million from the transaction, which has garnered preliminary AAA ratings from Fitch. The deal is collateralized by 525 non-prime residential loans and is expected to close at the end of March.

The mortgages have an average loan balance of $631,410, an original loan-to-value (LTV) ratio of 73.3%, and a model FICO score of 738. Geographically, the mortgages are highly concentrated in California – representing 47.1% of the loans. The mortgages have seasoned for an average of five months.