Radian Mortgage Capital is preparing to issue $348.8 million in mortgage-backed securities (MBS) through the Radian Mortgage Capital Trust, RMCT 2024-J1, secured by a pool of fixed-rate mortgages.
Amid a housing market clouded over with high interest rates and unsustainably elevated home prices, RMTC will issue the notes through a series of class A and B notes, and all tranches will mature in November 2054, according to a pre-sale report from Fitch Ratings.
Three hundred, fifty-nine loans compose the collateral pool, and they have an average balance of $971,614, said ratings analysts at Kroll Bond Rating Agency. Several of the class A tranches are exchangeable, while B1 through B3 notes are exchangeable, the rating agency said.
The lineup of notes includes super senior tranches that will be repaid sequentially; the A21 and A23 tranches, and B1 through B3 that pay interest only; a floating-rate A25 tranche; and three subordinate tranches, B4 through B6.
Credit enhancement ranges from 15.0% on the super senior notes to 0.70% on the B4 note, among the subordinate tranches, KBRA said.
On a weighted average (WA) basis, the assets have an original loan to value ratio of 74.7%, and lenders have reserves of $457,946, according to Fitch Ratings.
KBRA assigns ratings of AAA to the A5 through A25 tranches; AA- to the B1 notes; A- to the B2 notes; BBB to the B3 notes; BB- to the B4 notes and B to the B5 notes.
