JPMorgan is planning its third residential mortgage-backed securitization of the year from its J.P. Morgan Mortgage Trust, according to presale reports from Fitch Ratings and Kroll Bond Ratings Agency.

This latest deal totals $345.05 million and features 20 tranches, inluding exchangeable interest-only certificates. There are 15 (five are exchangeable interest-only) classes totaling $320.73 million rated 'AAA' by KBRA; of these, Fitch also rated all 'AAA except the A-M class, which it was not asked to rate. The $3.45 million B-1 notes, the $7.42 million B-2, the $5 million B-3 notes, the $3.62 million B-4 notes, and the $4.83 million B-5 were rated 'A', 'BBB', 'BB', and not rated, respectively, by both agencies.

The certificates are backed by 389 30-year fixed-rate mortgage loans. The pool consists of prime quality mortgages originated by mainly (83%), JPMorgan Chase Bank and First Republic Bank.

The homeowners in the pool are high credit quality which is referenced in the high weighted average loan-to-value (LTV) and WA CLTV at 64.2% and 66.3%, which provides a substantial margin of safety against potential home price decline, according to KBRA, as well as the weighted average FICO score of 763.

Another important positive aspect of the mortgage pool is the full documentation of each borrower’s income and assets, noted both Fitch and KBRA.

However, the pool is signifcantly geograhically concentrated. The top three states make up 74.0%, with approximately 49.3% of the pool located in California and 17.2% in New York. Fitch describes the California concentration as the "primary concentration risk".

JPMorgan Chase and FRB together will service 91.9% of the mortgages in the pool. PHH Mortgage will service 6.3%, while the remaining 1.8% will be serviced by Johnson Bank (1.0%) and Dubuque Bank and Trust (0.8%).

Wells Fargo will act as master servicer for the notes.

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