JPMorgan underwrites securities tied to VA loans

NEW YORK May 3 (Reuters) - JP Morgan Securities underwrote a $227 million securitization backed by Veterans Administration loans on real estate properties, market sources said on Monday.

The Department of Veteran Affairs could not immediately be reached for comment.

The deal, dubbed "Vende 2010-1," is linked to mortgage loans originated by the Veterans Administration and is backed by the full faith and credit of the U.S. government, the sources said.

The offering included $172.3 million of 3.61-year notes, $20.3 million on 5.66-year notes and $33.9 million of 13.6-year notes that were all priced with a coupon of 4.25 percent, market sources said.

Banc of America Merrill Lynch and Further Lane Securities served as co-managers for the sale, market sources said. (Reporting by Nancy Leinfuss; Editing by Leslie Adler)