Aspire Sponsor and CCS Structured Credit Investment Fund is preparing to bring a $450 million residential mortgage-backed securities (RMBS) deal to market, backed by a pool including a substantial amount of non-prime mortgages.
Fitch Ratings noted a drop in loans underwritten with full documentation, which accounted for 9.2% of the loan balance, a notable drop from the 13.5% seen on the SPIRE 2026-1 transaction, according to the rating agency.
SPIRE 2026-2 will issue the notes through about nine tranches of class A, M and B notes, according to analysts at Fitch and Kroll Bond Rating Agency.
The transaction will repay noteholders through a combination of pro rata on the senior A1 through A3 notes, and sequentially on the mezzanine and subordinate classes, Fitch and KBRA said.
All the notes have a stated final maturity of April 2066, according to Fitch.
Morgan Stanley, Barclays Capital and Mizuho Securities are the initial note purchasers, KBRA said.
Classes A1A, A1B, A2 and A3 classes will benefit from credit enhancement levels of 33.55%, 23.55%, 17.50% and 940%, respectively, Fitch said.
An array of unnamed originators accounted for the large majority of originators in the pool, 89.3%, the rating agencies said, while Hometown Equity Mortgage originated 10.7% of the pool.
Select Portfolio Servicing will service all the loan in the pool, while Rocket Mortgage s on the deal as master servicer, the rating agencies said.
The 829 loans in the pool have an average balance of $543,604, an original loan-to-value ratio of 69.4% and three months of seasoning.
To maintain cashflow to the notes, the deal includes performance triggers that are stricter than other recent non-qualified RMBS deals. Cumulative loss thresholds peak at 4.50%, a lower threshold than other recent deals, which put the trigger at 10%. In any case, the cumulative loss trigger will switch the deal to a sequential pay structure among the senior certificates and lock the A2 and A3 tranches out from principal payments, Fitch said.
SPIRE 2026-2 also includes excess spread and provision where the advancing party will not pay interest and principal on loans that are more than 90 days delinquent, KBRA said.
KBRA assigns AAA to all the A1 notes; AA and A to the A2 and A3; and BBB+, BB+ and B+ to the M1, B1 and B2. Fitch assigns AAA to the A1A and A1B notes; AA and A to the A2 and A3 notes; and BBB, BB and B to the M1, B1 and B2 notes; according to Fitch.
