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Special Reports
Home Equity Lending
Fieldstone Mortgage Securitizes $779MM
Fieldstone Investment Corp. affiliate Fieldstone Mortgage Investment Corp. has
securitized two groups of first- and second-lien residential loans through Fieldstone Mortgage Investment Trust
series 2006-2.
Lead manager for the $779.2 million offering was Lehman Brothers Inc. Co-managers
were Bear Stearns & Co. Inc., Credit Suisse Securities (USA) LLC and Merrill Lynch, Pierce, Fenner & Smith
Inc.
The two groups of loans backing the deal are conventional adjustable-rate and
fixed-rate mortgages originated by national conforming and nonconforming residential mortgage banker Fieldstone
Mortgage Co.
The securitization involved the issuance of four classes of senior notes and 11
classes of subordinated notes. Fieldstone Mortgage Ownership Corp., an affiliate of Fieldstone, retained the M10
and M11 notes, which represent $12.8 million in principal. The transaction is structured as an on-balance-sheet
financing. Fieldstone plans to use substantially all of the net proceeds from the deal to relieve outstanding financial
obligations secured by the mortgages and finance a pre-funding account related to the offering.
Real estate investment trust Fieldstone Investment Corp. owns and manages a portfolio
of nonconforming mortgages originated primarily by Fieldstone Mortgage Co. Fieldstone Mortgage Co. originates through
over 4,300 independent mortgage brokers served by regional wholesale operations centers and through a network of
retail branch offices.
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