RMBS

Like other recent pools of securitized mortgages located in the Los Angeles County area, any loans that exhibited material damage from the fires were removed from the pool before closing.

Agency underwritten loans accounted for 97.1% of the CMLTI 2025-1 pool, up drastically from 10.6% on the CMLTI 2024-1 series.

The class A1 notes have the lowest cumulative advance rate, which combines the interest and mortgage insurance rates to show the monthly increase in the line of credit, at 95.5%.

Just 2.15% of the loans in the pool financed properties in Los Angeles County, and the surrounding areas that have been impacted by the recent wildfires.

The portfolio is composed of 743 first-lien, fixed- and adjustable-rate, fully amortizing mortgages to borrowers with prime and non-prime credit. Most of the mortgages, 70.3%, are for home purchases.

Proceeds from principal can be used to make up for shortfalls to the notes, but those shortfalls on the class A2 and subordinate bonds will not be paid from principal proceeds until the senior classes are retired.

The senior certificates get credit protection from a specified lockout period, when the subordinate classes will receive no unscheduled principal payments from the collateral mortgages.

Alternative income documentation underwriting accounted for 61.9% of the collateral, compared with 55.2% of the underlying loans in the previous deal.

Up to 68% of the portfolio assets were restructured. The securitization has a grace period with term extension that allows borrowers to pay interest-only.

A vast majority of the collateral pool balance, 82.6%, are mortgages used to purchase primary residences, and just 17.4% finance second homes.