News of the tentative May 25 sale follows a recent announcement that First American Mortgage Securities Inc., the Tidalwave subsidiary, has acquired a loan-servicing platform of about $2.3 billion and another $100 million in loan sub-service contracts.
Company officials expect the pending sale to earn a rating of AAA, since the securities will be issued under an existing shelf-registration statement. Pricing details should be publicly available by May 22.
The company also is retaining servicing rights on the issue in exchange for about 44 basis points or a value of about 2.25%. Credit enhancement also should cost about 22 basis points.
"We are planning to issue on a monthly basis for the next six months," L. Edward Bache, First American managing director, says in a prepared statement. "The first pool includes both site-built and manufactured housing."
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