J.P. Morgan plans to securitize a pool of 457 residential mortgage loans with a balance of $344.9 million, according to Fitch Ratings.
JPMMT 2015-6 is the sponsor’s sixth deal of the year and is backed by 30-year, fixed-rate mortgages, similar to the first four deals of the year. With its fifth deal, completed in July, JP Morgan deviated from this pattern, securitizing a pool of adjustable-rate mortgages.
The 2015-6 pool is characterized by the same strong borrower credit quality seen in previous deals to be issued from the trust. The borrowers have weighted average FICO score of 767 and the loans have a combined loan to value of 73.6%. The loans are also highly seasoned (weighted average 29 months) and all of the loans have perfect pay histories.
All of the loans either qualified for a legal saf harbor under Ability-to-Repay Rules or are not subject to the rules because they originated before they took effect or finance investment properties.
Similar to previous deals, the primary concentration risk is California, where 38.5% of the properties are located; 19.6% of the properties are located in the San Francisco metropolitan statistical areas. Fitch noted in its presale report that the pool’s regional concentration resulted in an additional penalty of approximately 2% to the pool’s lifetime default expectation.
More than 38% of the pool was originated by First Republic Bank and Home Street Bank.