Cerberus Capital Management is returning to the securitization market with another large pool of re-performing mortgage loans sponsored by its FirstKey Mortgage affiliate.
The $874.8 million in notes is backed by 4,053 individual loans by borrowers with blemished credit, but with rehabbed loans that have an average seasoning of 102 months. The borrowers have been current for at least the last 24 months. The largest slice of the notes is the $541.49 million Class A-1 notes with a 38.1% credit enhancement. Fitch Ratings has issued a preliminary ‘AAA’ structured finance rating on that top of the capital stack. A $53.8 million tranche of Class A-2 notes next in the P&I waterfall has a 25.4 CE.