Donna M. Mitchell

The Verus Securitization 2022-6 transaction has a high concentration of loans, 47.7% that were underwritten using alternative documentation.

The Neuberger Berman pool has an average credit quality of ‘B’ on the indicative portfolio, which indicates a highly speculative credit quality.

Notes are slated to mature on June 25, 2042, and the mortgages are financing property types like one- to four-family residences and planned unit developments.

The transaction is building several structural precautions into the deal to mitigate potential effects from the COVID-19 pandemic.

On average, CLOs had a default exposure of 0.1% at the end of May, according to the latest update from Fitch Ratings.

Certificates will be supported by 407 home loans, two of which are adjustable-rate mortgage (ARM) loans that reference the one-year LIBOR.

Of the leases underpinning the deal’s collateral, just 0.2% are closed-end, wherein the trust would bear the wholesale market risk.

Investors in the senior classes of the capital structure will receive principal and interest payments sequentially, beginning with class A, until class E2 receives all of its principal and interest.

The trust will issue both taxable and tax-exempt bonds through the 2022A and 2022B series, respectively, according to S&P Global Ratings, which expects to assign ratings.

The current deal has a discounted residual value of securitization of 54.8%, lower than the 56.8% present in the 2015-A pool.

Total hard credit enhancement on the Encina Equipment, 2022-1, deal is higher for all classes of notes, with increases ranging from 2.5% to 5.3%.

The company relies on automated underwriting to originate 100% of its loans, which improves efficiency and consistency in the loan application process.

Utilities had to buy electricity from ERCOT for their customers at wholesale prices as a result of widespread power outages in February 2021.

CCG transaction’s managed portfolio and securitizations have had low net losses due to strong recovery performance, although default performance has historically been volatile.

At stake are 10 properties in CMBS loans representing about $382.2 million in allocated property balances with leases will expire before yearend 2023.

Primary markets is the locale for just under half of the collateral pool, 49.3%, which is below the average of 53.4% observed in the comparison set.

The class A-1 notes from the Series 2019-1 deal, currently undrawn, will be replaced with the $15 million class A-1 notes from the upcoming transaction.

Smart Option loans lack a government guarantee, but typically are extended to borrowers with higher credit quality and a higher percentage of co-signers.

The success of the seasoned loan pool depends on the servicer’s expertise in handling prescriptive HUD deadlines and procedures for filing claims.

Although the mortgage collateral was short on full documentation underwriting, the borrowers in the pool have high incomes and plenty of liquid reserves.