RMBS

The transaction's senior, interest-only tranches, which are also initially exchangeable, pay a coupon of 0.50%.

As servicer, Rocket Mortgage will not provide advances of delinquent principal and interest. Doing so runs the chance of intermittent cashflows to the trust.

The deal has an extensive capital structure, which is expected to repay investors sequentially, with notes enhanced by subordination.

Cross 2025-H3 has moderate leverage, according to KBRA, with a weighted average (WA) loan-to-value ratio of 72.3%, and a debt-to-income ratio of 33.5%.

The notes will get credit enhancement from balances on the subordinate bonds, which are permitted to amortize.

Originators applied bank statement, full documentation and profit and loss documentation in their underwriting.

So-called wet loans can be included in the transaction, and the servicer will have limited opportunity to deal with them without complete file information.

The impact of tariff policy on the mortgage-backed securities market is likely to surface first in the cost of new housing construction.

The underlying prime mortgages have an average balance of $358,024, a weighted average (WA) original FICO score of 776, an original cumulative loan-to-value (LTV) ratio of 73.6%.