RMBS

The latest investor statements show the persistence of a trend in which one vintage has a higher rate of distress than others, Morningstar DBRS finds.

The deal structure includes a lock-out feature that will redirect the portion of the subordinate principal among other protective features like subordination.

The class A notes include first cash flow and last cash flow tranches, both of which benefit from 28.31% in credit enhancement.

The notes will be issued off of a pool of 3,525 first- and junior-lien revolving HELOCs that were recently originated. The deal will repay investors on the 25th of each month, and notes have a stated final maturity date of July 2056.

SEMT 2026-INV4's notes are expected to pay coupons including 5.00%, 5.50% and 6.00% on the super senior tranches and one super senior, floater exchangeable tranche will pay 5.39%.

The structure contains seven tranches of class A notes, including two tranches for first cash flow and last cash flow, both initially exchangeable.

Issuance of securitized affordable-housing bonds reached $4.5 billion across 37 deals through August 13, already surpassing the $3.4 billion issued across 25 deals in all of 2025.

The deal will raise about $175 million in securitized bonds, backed by a pool of residential investors loans (42.1%) and traditional small-balance commercial (SBC) mortgages.

Despite the variety of loans in the pool, the vast majority of assets are considered qualified mortgages, with only 10.9% considered non-QM.