A Cayman Islands-based master trust is issuing $325 million in notes to finance agency-eligible mortgage purchases through a master repurchase agreement with Credit Suisse AG.
The Series 2021-1 notes through the Mortgage Repurchase Agreement Financing Trust (MRAFT) is the 13th note series to be issued by the trust since 2016, and is backed by a one-year revolving warehouse facility.
The transaction features a Class A note series in two tranches: a $243.75 million Class A-1 tranche and a Class A-2 tranche sized at $81.25 million. Both are rated Aa3 by Moody’s Investors Service. Targeted loans will be purchased after Friday's closing date.
The underlying sellers of the loans are approved lenders and servicers by Fannie Mae, Freddie Mac and Ginnie Mae. Loans sold through the vehicle must meet strict eligiblity, according to Moody's. Interest-only or second-lien loans are not permitted, and the loans must a maximum seasoning of 90 days.
The deal is full recourse to Credit Suisse, which is responsible for any face amount shortfall not covered by sale of eligible mortgage loans.
