A mixed-bag of business-purpose mortgage loans will act as collateral for a $238.5 million mortgage-backed securities (MBS) transaction from deal sponsor Chimera Investment.
The CIM Trust 2023-I2 will issue notes through a hybrid sequential-pay, pro rata cash flow structure, where the senior notes will repay principal to investors on a pro rata basis, according to ratings analysts from both DBRS Morningstar and S&P Global Ratings. Goldman Sachs is in the driver's seat as manager on the deal, according to the Asset Securitization Report's deal database.
Collateral for CIM Trust 2023-I2 consists of a mixed-bag of 1,023 loans. They include fixed- and adjustable-rate mortgages that are primarily for business purposes. Some of the loans are interest only and fully amortizing, and they finance first liens on a range of 1,049 property types, including single-family properties and two-to four-family homes, according to S&P.
The current CIM transaction has the largest closing pool balance of recent deals from the trust, at least dating back to CIM 2022-I1, but the average loan balance is decidedly not the largest, at $233,167. Many other aspects of the collateral look similar compared with the most recent deal, the CIM 2023-I1, according to DBRS. The notes have a coupon of 7.1%, a FICO score of 728 an original cumulative loan-to-value ratio of 66.9%, and an issuer debt service coverage ratio of 1.26%, all on a weighted average (WA) basis
Shellpoint Mortgage Servicing will be primary servicer on the deal, while Computershare Trust will be master servicer, S&P said.
Although the product type is mixed, a large majority, 85.8% is fixed rate, while just 14.1% of the pool consists of five-and 10-year interest-only products, Morningstar said.
DBRS assigns 'AAA', 'AA' and 'A' to classes A-1, A-2 and A-3, respectively; 'BBB', 'BB' and 'B' to the M-1, B-1 and B-2, respectively, and S&P's ratings are similar.
