Redwood Trust's subsidiary, Aspire Sponsor, is in another non-prime residential mortgage-backed securities (RMBS) deal, this time raising $468.8 million.
The transaction will sell the notes through a series of fixed-rate notes that are expected to offer buyers coupons including from 5.71% on the senior, A1 notes through 6.35% on the mezzanine class, according to Kroll Bond Rating Agency.
A pool of 917 residential mortgages, primarily fixed-rate, will collateralize the notes, KBRA analysts said, and hybrid adjustable rate mortgages (ARMs) compose the rest.
Self-employed borrowers account for a majority of borrowers, 52%, while alternative documentation—including bank stubs and profit and loss statements—accounts for the largest portion of underwriting methods used to originate the loans, 46.4%.
The alternative documentation level is also the largest percentage seen on the securitization program all year, KBRA said.
There is a higher percentage of second homes collateralizing Aspire Mortgage Trust 2026-3, or SPIRE 2026-4 compared with previous issuances this year, KBRA said, as the amount of investment property loans dipped, KBRA said.
Aspire Mortgage Trust 2026-3, or SPIRE 2026-4, is slated to close on June 23, with Morgan Stanley, Barclays Capital and Mizuho Securities as initial note purchasers, KBRA said.
Select Portfolio is servicing the loans, while Rocket Mortgage is on the deal as the master servicer.
KBRA assigns AAA to all the A1 notes, which includes a first cash flow and last cash flow tranche; AA to the A2 tranche; A to the A3 notes; BBB to the M1 notes and BB and B to classes B1 and B2, respectively.
