A portfolio of first-lien, fixed-rate prime residential mortgages will provide collateral to $575.6 million in certificates from the Chase Home Lending Mortgage Trust, series 2024-7.
According to the latest available database details, yields range from 6% on the class A4, AAA certificates to 5.9% on the class A8 certificates, also AAA. All
the class A certificates received AAA ratings. Class A1 through AX1 notes received AAA ratings from DBRS. The Class B1 and B2 notes received AA and A ratings from the rating agency, respectively. The classes B3, B4 and B5 certificates received BBB, BB and B, respectively.
Aside from DBRS, Fitch assigns AAA ratings to the A1 through AX1 certificates; AA- to the B1 notes; A- to the B2 notes; BBB to the B3 notes; BB to the B4 certificates and B to the B5 certificates.
The AAA certificates have credit enhancement levels of 15%, while the B1, B2, B3, B4 and B5 certificates benefit from enhancement levels of 3.20%, 1.95%, 1.05%, 0.60% and 0.35%, respectively.
The certificates will repay holders on the 25th day of each month or the next succeeding business day, starting in August, DBRS said. ¬
Among the deal's credit strengths are its low loan-to-value ratios (75.8.% on an original weighted average cumulative basis); strong borrower credit and full documentation on all loans in the pool, DBRS said. The notes have a FICO score of 768 on a WA basis, and annual incomes are $623,263, also on a WA basis. Borrowers also have non-zero WA liquid reserves of $912,512, the rating agency said.
Most of the loans, representing 89.8% of the pool, will finance single-family homes; condo and co-op properties account for 9.7%; and two- to four-family homes, at 0.4%.
