A single loan secured by first-priority mortgages that are financing 2,464 single-family homes will secure a $403.6 million mortgage-backed securities deal from VINE 2024-SFR1.
The transaction will issue notes from a structure that will issue A, B, C, D and E class of notes through six tranches, and repay them sequentially, according to ratings analysts at DBRS Morningstar. BofA Securities, JPMorgan Securities, Raymond James & Associates and Mizuho Securities are managers on the deal, according to Asset Securitization Report's deal database.
The deal has an underwriting debt-service coverage ratio (DSCR) of at least 1.0, and Morningstar says the issuer reports a loan-to-value ratio of 81.00%. Midland Loan Services is the servicer and special servicer on the deal, the rating agency said. The deal is expected to close at the end of February, the rating agency said.
On average, the underlying properties had an original lease term of 12.3 months, and have a remaining term of 6.2 months, the rating agency said. By broker price opinion, the homes had a value of $202,250 on average, according to DBRS. The properties also had an average actual rehab cost of $12,463, the rating agency said.
In terms of geographic diversity, South Carolina (22.9%), Ohio (22.1%), Alabama (16.7%), Indiana (14.7%) and Missouri (9.3%) represent the top five states by the percentage of broker price opinion in the collateral pool, according to DBRS.
DBRS expects to assign ratings of AAA to the classes A and B notes; AA to the class C notes; and BBB to the classes D and E notes. Fitch Ratings also assessed the notes, and expects to assign AAA to the class A notes; AA- to the class B notes; A- to the class C notes and BBB- to the class D notes.
