All the 308 underlying loans are first lien, with an average balance of $1.2 million, and a weighted average (WA) coupon of 6.6%, says Kroll Bond Rating Agency. The transaction issue 15 tranches of class A and B notes that will repay investors through a senior-subordinate, shifting interest structure, KBRA said.
Compared to the CMLTI's previous series of notes, the 2024-1, the portfolio shifted drastically to one that's agency underwritten. Such loans accounted for 97.1% of the CMLTI 2025-1 pool, up drastically from 10.6% on the CMLTI 2024-1 series. Borrowers had a higher median income of $415,744, significantly higher than the $384,059 on the previous deal. Liquid reserves was also significantly higher, at $835,765, compared with $455,797 on the 2024-1, according to KBRA.
The A4, A10 and A12 notes benefit from 15% in credit enhancement, KBRA said. The A14 notes benefit from credit enhancement of 6.35%. The B1, B2 and B3 tranches benefit from credit enhancement levels of 3.95%, 2.55% and 1.25%, respectively.
The WA debt-to-income ratio of 36.0%, is about the same as the 2024-1 series. Self-employed borrowers account for slightly more than a quarter of the current pool, down from 31.6% in the 2024-1 series.
Also on a WA basis, the underlying loans had an original FICO score of 776.
PennyMac Loan Services account for 41.7% of the pool, with Rocket Mortgage and Movement Mortgage accounting for 20.9% and 10.3%, respectively.
KBRA assigns AAA ratings on the A4 through the A-I-8 tranches; AA- on the B1 and A- to the B2 notes; BBB- to the B3 notes; BB- to the B4 notes; and B1 to the B5 notes.
