Vista Point Mortgage is sponsoring a $350.5 million securitization of a pool of fixed, prime, expanded-prime and closed-end residential mortgages, selling the notes to investors through the Vista Point Securitization Trust, 2025-CES3.
The pool benefited from underwriting standards that improved from the pre-crisis era around certain borrower attributes, including income, employment verification, appraisal and reserve requirements, according to Morningstar DBRS.
The transaction will repay investors sequentially, according to DBRS, until the expected legal final maturity date of November 2055. BMO Capital Markets, J.P. Morgan Securities and ATLAS SP Securities are initial purchasers on Vista Point 2025-CES3, which is slated to close on October 31, DBRS said.
Vista Point CES3 will issue the notes through seven tranches of class A, M and B notes, the rating agency said.
Classes A1 and A2 benefit from credit enhancement levels representing 27.7% and 22.7%, of the respective note balances, the rating agency said. After that, credit enhancement levels range from 17.7% to 4.0%, from classes A3 to B2, DBRS said.
By the deal's September 30 cutoff date, the collateral pool included 1,398 mortgages—which are also second-lien, DBRS said.
The pool appears to be well diversified by loan originator. While Vista Point Mortgage and FundLoans Capital together originated the largest portion of the portfolio, representing 29.3% of the pool. After that, a long list of originators contributed to the pool, each accounting for less than 10% of the pool, DBRS said.
