Guaranteed Rate re-enters securitization market with prime jumbo deal

Retail lender ramps up jumbo lending

Guaranteed Rate re-enters securitization market with prime jumbo deal

Retail mortgage lender Guaranteed Rate has re-entered the securitization space with its first post-pandemic prime jumbo residential mortgage-backed securities (RMBS) deal.

"We are playing offense in the market, offering this product to better serve our sales force and the consumer," said Allison Burkholder, senior vice president of non-agency trading at Guaranteed Rate.

The company launched its RATE securitization shelf in 2020. Jeremy Collett, head of capital markets at Guaranteed Rate, said securitization allows Guaranteed Rate to be a steady jumbo loan issuer when many lenders hesitate due to volatility.

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"Our securitization program is the cornerstone of our ability to offer reliable jumbo financing to our customers and referral partners," Collett said. "We have been the number one retail lender in the space for over a decade, and we are committed to regular, systematic issuance. With banks exiting the mortgage lending space due to new regulations, our securitization program should allow us to be the leading jumbo lender for a long time."

Jumbo credit supply expanded in recent months, according to the Mortgage Bankers Association. MBA’s Mortgage Credit Availability Index (MCAI) showed that jumbo loan availability increased by 0.1% in May.

'We've taken the time internally to carefully construct a strategy that can withstand market volatility, giving us the ability to be a systematic issuer that investors can depend on," said Jennifer Shewski, senior vice president of transaction management and capital markets at Guaranteed Rate.

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Guaranteed Rate CEO Victor Ciardelli commented: "We're not waiting for stability; we're defining our position in the industry. This securitization deal is a testament to our tireless spirit of innovation, regardless of market conditions, and dedication to leading the market, always."

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