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Citigroup’s latest offering, the Citigroup Mortgage Loan Trust, is preparing to issue $323.6 million in mortgage-backed securities (MBS). These securitized bonds are supported by a pool of prime residential mortgages.
Here are some key details about this MBS offering:
* Collateral: The MBS are backed by a pool of 365 fixed-rate, first-lien mortgages.
* Loan Type: A majority (61.4%) are non-agency eligible loans, while the remaining 38.6% are agency eligible.
* Borrower Profile: The borrowers in the pool have a strong weighted average FICO score of 765, a weighted average annual income of $447,724, and reserves of $443,356.
* Loan Characteristics: The mortgages have an average balance of $886,818 and a weighted average loan-to-value (LTV) ratio of 74.7%.
* Geographic Concentration: The pool shows some geographic concentration, with California (39.4%), Texas (18.1%), and Florida (7.9%) accounting for 65.4% of the loans.
* Credit Enhancement: The deal includes credit enhancement measures, with the three super senior tranches of notes benefiting from 15.0% credit enhancement, and the senior support class receiving 9.40%.
* Ratings: The super senior tranches have received AAA ratings from KBRA and Aaa from Moody’s.
* Servicing: PennyMac Loan Services will service 52.2% of the pool, while Fay Servicing will also play a role.
* Due Diligence: All loans in the pool have undergone third-party due diligence.
This transaction highlights Citigroup Global Markets Realty’s strength as an aggregator in the mortgage market, bringing together a robust pool of prime residential mortgages to support this MBS issuance.

Video courtesy of IPO-VID In Patrick’s Opinion

Video courtesy of IPO-VID In Patrick’s Opinion