A pool of 298 prime jumbo mortgages will secure $366.7 million in residential mortgage-backed securities (RMBS), in a deal sponsored by Onslow Bay Financial.
The deal is set to close on February 11, selling the debt through class A and B notes, according to Kroll Bond Rating Agency.
OBX 2026-J1 will repay noteholders through a senior subordinate, shifting interest structure. Under the latter provision, subordinate tranches of notes will receive principal payments while senior classes are outstanding.
OBX 2026-J1's pool consists largely of prime, non-agency loans, which account for 88.5% of the pool, by balance. Agency-eligible loans make up 11.5% of the pool balance, KBRA said.
Notes are expected to mature in January 2056, KBRA said. They are expected to pay coupons of 4.50% on the A9 tranches through 21, which are also to be rated AAA, KBRA said. Other coupons range from 0.33% on the A-X-1 to 1.58% on the interest-only, exchangeable B-X-1 and B-X-2 notes, the rating agency said.
Triple-A ratings are assigned through the class A26 notes, KBRA said, adding that the B1 notes are to be rated AA+ and the B2 notes A+. Subordinate tranches B3, B4 and B5 are to be rated BBB+, BB and B+, respectively.
On average, mortgage sizes are $1.2 million, KBRA said, while noting that leverage levels are moderate, with a weighted average (WA) loan-to-value ratio of 70.7%.
Primary residences account for 91.5% of the pool, and borrowers have a median income of $399,456 and WA liquid reserves of $647, 921, the rating agency said.
