While the investment bank
Most of the tranches, A-5 through A-X, will receive an AAA rating from KBRA, the rating agency said. The B1 notes receive a AA- rating; the B2 notes get an A- rating; BBB- to the B3 notes; BB- to the B4 notes and B- to the B5 notes, according to KBRA. The A5 through A21 notes have credit enhancement levels amounting to 15.00%, while the rest of the notes are covered by levels ranging from 8.65% to 0.55%, the rating agency said.
The deal includes interest-only notes, and will repay investors sequentially, KBRA said. They benefit from subordination. The super senior tranches account for a large majority of the note balance, $269.2 million, according to KBRA analysts.
A pool of 261 first-lien loans, with an average balance of $1.2 million, secures payments to the notes, according to the rating agency. On a weighted average (WA) basis, the All of the loans are fixed-rate mortgages largely financing a pool of single-family, owner-occupied homes (80.4%), while 19.6% are for the purchase of second homes. Also, all the loans in the pool are qualified mortgages.
United Wholesale Mortgage is the largest originator on the deal, accounting for 56.1%, while Guaranteed Rate and CrossCountry Mortgage represent 10.4% and 8.4% of the portfolio, respectively.
As for the borrower profile, they had an original FICO score of 771 on a WA basis, a median income of $422,894, and liquid reserves of $581,811. California has the largest concentration of borrowers, with 37.7%, while Florida and Colorado account for 10.3% and 5.6% of the pool, respectively.
