RMBS

Loan modifications and expenses have reduced available interest and net weighted average coupon (WAC) rates in the deal.

Any loan that is more than 120 days delinquent becomes a stop-advance loan, a designation that prevents interest leakage to bondholders.

Portfolio enhancements and diversifications cushion the impact of the L.A. wildfires from RMBS losses.

Unlike previous FIGRE deals where overcollateralization provided credit support to the notes, FIGRE Trust 2025-HE1 has a class G composed of principal-only notes that provide the credit support.

The deal has a step-up coupon feature that calls for the fixed rates on classes A1, A2 and A3 to increase by 100 basis points, subject to the net weighted average coupon (WAC) after four years.

Like other recent pools of securitized mortgages located in the Los Angeles County area, any loans that exhibited material damage from the fires were removed from the pool before closing.

Agency underwritten loans accounted for 97.1% of the CMLTI 2025-1 pool, up drastically from 10.6% on the CMLTI 2024-1 series.

The class A1 notes have the lowest cumulative advance rate, which combines the interest and mortgage insurance rates to show the monthly increase in the line of credit, at 95.5%.

Just 2.15% of the loans in the pool financed properties in Los Angeles County, and the surrounding areas that have been impacted by the recent wildfires.