J.P. Morgan's jumbo mortgage pool raises $391.5 million in RMBS

J.P. Morgan's latest pool of prime jumbo pool will support about $391.5 million in residential mortgage-backed securities (RMBS), with underwriting described as issuer-defined full documentation.

Notes have a final scheduled distribution date of December 2056, with interest rates ranging from 6.31% on the A-1 class to 0.50% on the class A-10 notes, according to analysts at Morningstar DBRS.

J.P. Morgan leads a long list of firms that are the initial purchasers supporting the notes, including Academy Securities, AmeriVet Securities, Robert W. Baird and Stifel, Nicolaus, the rating agency said.

The class A and B notes benefit from credit enhancement levels including 15.00% on the A2 and A3 tranches, and 6.20% on classes such as A1 and A9, the rating agency said.

The deal structure includes a lock-out feature that will redirect the portion of the subordinate principal that would have gone to subordinate classes if the principal amount of those classes is less than or equal to 0.85% of the collateral principal balance at issuance.

J.P. Morgan Trust will repay senior noteholders concurrently, and sequentially to the class A-17 through class B certificates and sequentially from class B1A through B6.

By the underlying collateral pool's cutoff date, UMW had originated the largest portion of the mortgages, 29.6%, according to DBRS. Rocket Mortgage originated another 21.7% of the pool, and the next largest company represented is CrossCountry, with 9.1%, DBRS said.

A JPMorgan entity will service a substantial majority of the loans, 66%, the rating agency said. Other top servicers are United Wholesale Mortgage and loanDepot.com, the rating agency said.

Rocket Mortgage is the deal's master servicer.

Ratings include AAA on the A1 through 18 classes; AA on the B1 notes; A on the class B2 notes; BBB on the B3 notes; and BB and B on the B4 and B5 notes, respectively.