A large pool of seasoned mortgage loans will back $1 billion in residential mortgage-backed securities (RMBS) from the
The underlying pool is composed of performing and reperforming loans, and they were originated in 2019 or earlier, and have seasoning of at least 24 months, according to Fitch Ratings.
Some 90.3% of the loans have had a clean payment history over the past 12 months, with only a 1.3% delinquency rate, according to Fitch.
CMLTI 2026-RP1 has a final probability of default of 33.8% in the 'AAA' rating stress, Fitch said. Also, the notes have a probability of default of 20.1% on the 'B' rating stress, the rating agency said.
As for the deal's drivers of loss severity, Fitch notes that CMLTI 2026-RP1 has a low month-to-month cumulative loan-to-value ratio of 43.5%, which is driving a loss severity in the 'AAA' rating stress of 25.3%.
The deal's low leverage is one of its highlights, Fitch said.
Select Portfolio Servicers and Rocket Mortgage will perform the primary servicing responsibilities, accounting for 44.1% and 55.9% of the pool by unpaid balance, the rating agency said.
CMLTI 2026-RP1 will repay investors sequentially. Subordinated classes will not receive any principal until senior classes are repaid in full, and the subordinated classes will absorb losses in reverse-sequential order.
In terms of credit enhancement, CMLTI's notes enjoy credit enhancement levels of 10.80%, 8.30%, 6.00%, 4.50%, 3.10%, 2.20%, 1.45% and 0.70% on classes A1, A2, M1, M2, B1, B2, B3 and B4, respectively, the rating agency said.
Non-interest-bearing deferred principal amounts account for 7.5% of the mortgage pool, according to Fitch.
The rating agency assigns AAA, AA, A, BBB, BB and B to the A1, A2, M1, M2, B1 and B2 tranches, respectively.
