|[October 22, 2013]
Shellpoint Opts for Whole Loan Sale
NEW YORK --(Business Wire)--
Shellpoint Partners LLC ("Shellpoint"), a New York-based specialty
finance company focused on the U.S. residential mortgage market, today
announced that it is withdrawing the Shellpoint Asset Funding Trust
("SAFT") 2013-2 securitization (which was offered under Rule 144A) from
the market in favor of selling the underlying whole loans.
"This is not a decision we're undertaking lightly," said Bob Magee,
Chief Investment Officer of Shellpoint, "but at some point we can't
ignore best execution. The current RMBS bid is not competitive with the
whole loan bid, even accounting for the qualitative cost of pausing our
RMBS program. There is a substantial pricing disconnect between the
whole loan and new issue RMBS secondary markets. We went very far down
the road on SAFT 2013-2 - in fact we planned to close next week - hoping
that the disconnect would ease, but the realities of the current market
Saul Sanders, Co-CEO of Shellpoint, indicated that Shellpoint remains
committed to building a robust private label RMBS program. "We intend to
continue our efforts in the non-agency market and will, like other
participants, monitor the secondary markets as they evolve. We will also
continue to work with others in the industry and in Washington to help
evaluate the issues that challenge the return of a healthy, sustainable
About Shellpoint Partners LLC
Shellpoint is a specialty finance company focused on the U.S.
residential mortgage market. Formed in 2010, one of Shellpoint's primary
goals is to provide additional options and liquidity to quality
borrowers who do not fit the existing underwriting criteria for agency
r government-backed mortgages. Shellpoint hopes that providing these
additional options and liquidity will help the housing market recover
through the return of private capital and the expansion of access to
mortgage credit for such borrowers.
As an active industry participant and one of the few RMBS issuers since
the credit crisis, Shellpoint is also committed to helping define the
new market standards and practices that will support the growth of a
healthy and responsible RMBS market.
For more information, please see the Company's website at www.shellpointllc.com.
Safe Harbor Statement
Certain statements in this release and in any of Shellpoint's or its
affiliates' public documents referred to herein, contain or incorporate
by reference "forward-looking" statements. Statements that are not
historical fact are forward-looking statements. Words such as "expect,"
"believe," "anticipate," "project," "estimate," "forecast," "objective,"
"plan," "goal," "apparent" and similar expressions are intended to
identify forward-looking statements. Forward-looking statements are
based on Shellpoint's and its affiliates' current beliefs, intentions
and expectations; however, forward-looking statements involve known and
unknown risks, uncertainties and other important factors that could
cause actual results, performance or achievements, to differ materially
from those reflected in the statements made or incorporated in this
release. Thus, these forward-looking statements are not guarantees of
future performance and should not be relied upon as predictions of
future events. The risks and uncertainties referred to above include,
but are not limited to, future economic and business conditions; the
effects of competition from other mortgage lenders; current uncertainty
in implementation of the Dodd-Frank Wall Street Reform and Consumer
Protection Act, including its implementing legislation and regulations,
and other legislative and regulatory changes that impact the business,
operations or governance of mortgage originators and/or securitizers;
and Shellpoint's and its affiliates' ability to comply with the
complexity of the various federal, state and local laws that govern its
businesses; changes in regulations, mandates or the occurrence of other
events that impact the business, operation or prospects of
government-sponsored entities or government agencies such as the Federal
Housing Administration or the Veterans Administration and/or
Shellpoint's or its affiliates' ability to sell mortgage loans to such
entities or agencies.
All forward-looking statements set forth herein are qualified by this
cautionary statement and are made only as of October 22, 2013. Neither
the Company nor any of its affiliates undertakes any obligation to
update or revise the information contained herein, including without
limitation, any forward-looking statements, whether as a result of new
information, subsequent events or circumstances, or otherwise, unless
otherwise required by law.
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