J.P. Morgan is marketing its fourth offering of private-label residential mortgage bonds of the year, according to Fitch Ratings.
The deal, J.P. Morgan Mortgage Trust 2016-4 is by backed by 437 loans with a total balance of approximately $321.8 million. The pool consists of 30-year, fixed-rate mortgages originated by various lenders, including Quicken Loans (28.1% of the pool), Caliber Homes (14.4%), and Flagstar Bank (9.5%).
The collateral attributes of the pool are largely consistent with recent transactions from the same issuance shelf, according to Fitch. The borrowers have strong credit profiles, low leverage, and adequate liquid reserves, according to Fitch. The pool has a weighted average (WA) FICO score of 752 and an original combined loan-to-value (CLTV) ratio of 72.2%. The pool’s primary concentration risk is in California, where approximately 36.8% of the collateral is located.