Bank of America Merrill Lynch

In the non-prime pool, owner-occupied properties account for most of the assets, at 55.1%; the amount of investor properties represents 41.6% of the deal.

A 1.50% residual value risk, down 1.50% from the prior transaction; and an Aaa loss of level 8.50%, an increase of 50 bps, puts expected losses at a Aaa is 10.0%, down 1.0% from the prior transaction.

Marlette Funding partnered with Cross River Bank to originate the Prime loans, which account for 86.3% of the pool.

Firstrust Savings Bank and First Citizens Bank originated the loans, all of which are in-school, and a vast majority of the loans in the pool, 82.0%, are fixed rate.

Pricing guidance suggests the A1+ and F1+ notes are expected to yield 5.5% over the three-month interpolated yield curve, pricing at par. Yields are expected to vary from 5.49% to 5.42% on the AAA notes over three-month, interpolated yield curve.

The securitization amount is smaller than an earlier transaction, and its AAA notes are expected to price at wider spreads than the AAA notes on the 2024-A series.

The Structured Finance Association questions whether funding closed-end seconds is an appropriate role for the government-sponsored enterprise, while newer lenders welcome the liquidity support.

Some 54 contracts and 39 obligors, with an average contract balance of about $14.46 million, and the average exposure to an obligor is about $22.79 million.

The deal has 76,440 in underlying loans, compared with 46,671 on the 2023-C deal. The average balance per borrower, however, was just $14,657, compared with the $14,430 on the 2023-C deal.

The transaction could be upsized to $1.25 billion, from $1 billion, but the 4.00% overcollateralization level is expected to remain constant through the life of the deal.