Donna M. Mitchell

The securitization is backed by an irrevocable financing order that empowers the issuer to impose, collect and receive fixed recovery charges (FRC), from retail customers.

Larger system wide sales, three note classes and a cash trapping period, are among the four key changes to the pending transaction. It is also the largest Cajun Global series.

Over time, the MFIT securitizations have been getting larger in dollar volume, pricing at tighter spreads, and benefiting from more subordination.

While the trust is exposed to potential for degraded performance during the revolving period, Fitch pointed out that obligors tend to prioritize DPP payments.

The enormous issuance is backed by a single loan secured by first-priority mortgages on a pool of about 6,148 single-family rental homes, and 299 townhouses.

The deal is fortified with collateralization, subordination and reserve accounts throughout the capital structure to get most of the notes to top ratings.

The Oportun Issuance Trust 2021-C is one of the first deals on the platform to be backed by secured personal loans.

Borrowers on the underlying loans in PMT Loan Trust 2021-INV1 have a weighted average (WA) original credit score of 778, plus a WA debt-to-income ratio of 34.6%.

Velocity has seven classes of securities divided into 25 subclasses, including 15 that are entitled to principal and interest, seven to only interest, and one to any remaining excess cash.

The current deal uses a capital structure virtually identical to the 2021-NMQ2, with three classes of senior notes with ratings ‘AAA’ to ‘A’, that will pay on a pro rata basis.

The transaction is a $340.0 million interest-only, floating-rate mortgage loan with an initial three-year loan term and two successive one-year extension options.

The size of the current deal stems mostly from the ‘AAA’ piece, which was $210 million, compared to $162 million in the last ABS. Earlier deals hovered around $250 million.

Not even Dunkin' is immune to the labor shortage perplexing the restaurant sector, even though its business model relies heavily on drive-up locations and takeout dining.

FFELP, Stafford consolidation loans comprise the bulk of the collateral in the transaction.

Chapter 7 and Chapter 13 make up about 48% and 31% of the borrowers in the pool, respectively, while non-bankruptcy borrowers make up 21% of the pool.

The entire pool is comprised of fixed-rate, fully amortizing mortgages, with an average balance of $901,373. They are also first-lien loans.

The loans are related to just one timeshare site in Las Vegas, Nevada, called the Tower 52 Vacation Suites. The loans were originated under an agreement with Hilton Resorts.

About 87% of the loans in the pool were underwritten to borrowers with less than full documentation and out of that group, about 63.9% were underwritten to a 12- to 24-month bank statement to verify income.

The GSE comes to market with a pool that is less volatile than average Freddie Mac pass-through deals, plus below-average amortization.

Most of the home loans were originated post-COVID and are on owner-occupied properties.