PennyMac's pool of 1,036 prime mortgages will secure $402.9 million in residential mortgage-backed securities (RMBS). Most of the pool (74.1%) is composed of investment properties and second homes (25.9%).
Almost all the super senior classes of notes PMT Loan Trust, 2026-INV8 —A1 through A27—are expected to pay coupons of 5.0%, 5.5% or 6.0%, the same coupons as the previous investment-heavy transaction, the PMT Loan Trust 2026-INV7, say analysts at Kroll Bond Rating Agency.
One exception among those notes is the A-19 tranche, which is expected to pay a coupon of 6.00%, compared with 5.00% on the same tranche in the previous deal, the PMTLT 2026-INV8, according to KBRA.
Credit enhancement levels of the notes include 15.00% on the AAA-rated tranches, and 6.40% on the notes with a AA+ ratings, according to KBRA.
The deal has an expected closing date of September 8, with
Also, the notes, which have a senior-subordinate repayment structure with a shifting interest structure that will ensure payment of principal to the subordinate tranches, while senior tranches are outstanding, KBRA said. The notes are expected to have an expected final maturity date of August 2057.
The pool is composed of prime, agency-eligible investment properties and second homes with an average balance of $388,964. Almost a quarter of borrowers, 24.6%, are self-employed and they have a non-zero weighted average (WA) annual income of $308,673, with liquid reserves of $362,101.
Borrowers have an original FICO score of 775 on a WA basis, the rating agency said.
Outside of the senior classes of notes, KBRA assigns the B1, B2, B3, B4 and B5 tranches ratings of AA-, A-, BBB, BB+ and B+, respectively.
