Springleaf Financial is reportedly prepping a $292 million RMBS backed by subprime loans that were originated in the past few years, according to a Dow Jones report.
In May, the company filed with the Securities and Exchange Commission to raise up to $500 million for a REIT that would buy existing mortgages and other consumer loans.
At the time of the filing, the firm told investors that it still viewed subprime mortgage lending as a great business, according to a Reuters report.
The company is a former credit arm of American International Group and is 80%-owned by Fortress Investment Group. Fortress is the private equity firm run by former Fannie Mae Chief Executive Officer Daniel Mudd.
“We expect to be a significant participant in the reemergence of this important market as the new private RMBS market takes shape,” Springleaf said in its May regulatory filing.
