A portfolio of more than three thousand fixed-rate, prime and near-prime mortgages from several originators will collateralize about $247.8 million in residential mortgage-backed securities (RMBS), issued through the SAIF Securitization Trust 2026-CES1.
The deal offers notes through five senior A, one mezzanine, and three class B notes, according to Morningstar DBRS.
The class A tranches are composed of notes that will repay noteholders on a pro rata and sequential basis, according to DBRS. The mezzanine and subordinate notes will repay sequentially, DBRS.
The notes get credit enhancement from subordination, the rating agency said. Notes A1, A1A, A1B, A2 and A3 benefit from initial credit enhancement levels of 19.70%, 25.00%, 19.70%, 14.50% and 10.25%, respectively, the rating agency said.
J.P. Morgan Securities and Nomura Securities International are initial purchasers on the deal, which is expected to close on March 27, 2026, DBRS said.
SAIF 2026-CES1 is the third securitization of closed-end, second-lien (CES) mortgages from SAGE Residential AIF.
Carrington Mortgage Loans originated and services most loans in the pool, 63.3%, followed by PHH Mortgage, with 33.0% and Planet Home Lending, 3.7%, the rating agency said.
The loans were underwritten primarily to full documentation standards, including one to two years of W-2 verification, or two years of personal and business tax returns for self-employed borrowers, DBRS said. The latter accounts for just 6.2% of borrowers in the pool, DBRS said.
Borrowers have a weighted average current FICO score of 726, and cumulative loan-to-value (CLTV) of 73.0%. Also, all the underlying loans are fixed-rate, fully amortizing, and have no interest-only terms or balloon options, DBRS said.
DBRS assigns ratings of AAA to the A1 through A1B notes; AA and A to the A2 and A3 notes; and BBB, BB and B to the M1, B1 and B2 notes, the rating agency said.
