Donna M. Mitchell

Small-balance commercial mortgages, SBA 504 and investor loans, all first-lien, make up the collateral pool.

The current pool has smaller exposures to the construction and turf sectors compared to the 2024-2 series, which have seen higher loss rates than the agriculture sector.

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

Unlike most aircraft securitizations, Gilead 2025-1 uses a mortgage amortization style, de-levering at a lower rate compared to a more typical straight-line payment style.

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

Investor properties or second homes account for 38.1% of the pool. Also, 27.9% of the loans are a debt service coverage ratio (DCSR) loan product.

While SoFi uses a third-party servicer for both of those product types, it services its entire consumer loan portfolio.

To keep note repayment on track, credit enhancement comes from subordination, and senior notes benefit from a principal lockout period on the subordinate classes.

Aside from the assets' credit quality, the bank's 60 years of experience originating and servicing auto loans is a boost to the notes' credit.

Borrowers in GCAR 2025-1's underlying collateral pool have a slightly lower FICO score than the GCAR 2024-4 deal, and they bought more new cars.