ABS

The deal is backed by recently originated, 30-year fixed-rate mortgages with an average combined loan-to-value ratio of 75.1%, according to Morningstar DBRS.

All loans in the deal's portfolio were made to investors and underwritten based on property cash flow and rental income to determine borrower eligibility.

The transaction's pool includes roughly 2.4 million square feet of office space, or 94.6% of the total, on the first through 60th floors.

Non-prime loans comprise 72% of mortgages backing CROSS 2026-NQM10 Mortgage Trust, with most of them fixed-rate.

The deal's structure includes debt service coverage ratio (DSCR) triggers that will deposit excess cash is deposited in the cash trap reserve and loan-to-value tests.

Interest will be repaid sequentially. Scheduled principal will be paid based on the scheduled outstanding note balance for the applicable payment period and the note balances.

Equipment loans and leases that Redaptive Sustainability primarily acquired from originators, will back the asset pool.

The transaction will repay senior fees, principal and interest on the A1 class before repaying monthly interest on all remaining outstanding classes of notes.

The top 20 obligors account for 32.0% of the aggregate securitization value, while the top 10 represent 18.8%, a moderately elevated concentration.

SLR series 2026-1 benefits from initial overcollateralization of 8.00%, with a target of either 13% of the pool's aggregate ABS value or 8.00% of the securitization value on May 31.

The Additional Tax Lien Account is Acacia 2026-1's prefunding account, which will buy assets in the deal's first six months, up to $33.5 million, and is one of the deal's two investment accounts.

A cash trap provision calls for half of available funds to be deposited into the cash trap reserve sub-account if the debt service coverage ratio (DSCR) is between 1.35x and 1.275x.

The initial overcollateralization level was 14.50%, an increase from 14.00%. Target overcollateralization, meanwhile, increased to 18.75, compared with 16.50% on the previous deal.

Figure Lending originated the HELOCs using the FICO 9 scoring model, which treats medical debt, rental payments and repaid collection accounts differently.

Analysts at KBRA estimate a base case loss of 4.8%, down from the estimated loss of 5.6% on the 2025-1 series.

Classes A, B and C benefit from credit enhancement levels of 26%, 17% and 13%, respectively and have an initial loan-to-value ratio of 74%, 83% and 87%, respectively.

Foundation had introduced Version 3 of its credit risk model, using the most recent delinquency data, to improve loan performance predictions.

The deal includes a three-year revolving period when collections can be used to buy new collateral if it meets eligibility and reinvestment criteria.

A delinquency test requires that excess cash pay down the notes sequentially if the aggregate delinquent loans represent more than 5.0% of the portfolio balance's average loan balance.

The collateral pool includes more than 1.1 million passings across 10 states, with Georgia accounting for the largest percentage (31%).