Deephaven Residential Mortgage Trust's latest series of residential mortgage-backed securities (RMBS), collateralized by non-agency, business-purpose investor loans, is set to raise $296.2 million, slightly less than its previous effort.
The deal is slated to close on June 25 and sell the notes through a series of class A, mezzanine and B notes, with the two most senior notes issuing the bulk of the notes, according to Kroll Bond Rating Agency.
At least the A1A through A1-LCF tranches are expected to offer coupons of 5.84%, according to Asset Securitization Report's deal database. Other senior notes, the A2 and A3 notes offer coupons of 6.04% and 6.19%, respectively.
The M1 and B1 notes are expected to offer coupons of 6.58% and 6.64%, respectively.
RCF III TRS is sponsoring the deal, which has a final maturity of June 2071, with an optional redemption of June 2029, KBRA said.
Initial purchasers include
Known as DRMT 2026-INV3, the deal will repay noteholders through a hybrid pro-rata, sequential structure. The transaction will repay the seven class A tranches on a pro rata basis, KBRA said. That includes the first cash flow A-1FCF tranche and the last cash flow A-1LCF tranches.
Excess spread to offset potential losses helps preserve DRMT 2026-INV3's cash flow. There is also a 90-day stop-advance provision that prevents the deal from advancing any interest and principal from loans that are more than 90 days behind on payments, KBRA said.
pool is composed of 1,092 investment property mortgages, mostly financing single family homes and planned-unit developments, which account for 61.4% of the pool. Multifamily, two-to four-unit properties, account for 26.2% of the pool, KBRA said.
KBRA analysts assign AAA ratings to the A1 notes; AA to the A2 notes; A to the A3 notes; and BBB, BB- and B- to the M1, B1 and B2 notes, respectively.
