Subprime lending

KBRA Assigns Preliminary Ratings to Notes Issued by Westlake Automobile Receivables Trust 2020-1

Retrieved on: 
Wednesday, March 4, 2020
Banking, Professional services, Finance, Finance, Money, Economy, Credit rating agencies, Kroll Bond Rating Agency, Credit risk, Subprime mortgage crisis, Credit enhancement, Receivables, Subprime lending, Bond credit rating, KBRA

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to eight classes of notes issued by Westlake Automobile Receivables Trust 2020-1 (WLAKE 2020-1), an auto loan ABS transaction.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to eight classes of notes issued by Westlake Automobile Receivables Trust 2020-1 (WLAKE 2020-1), an auto loan ABS transaction.
  • The preliminary ratings reflect the initial credit enhancement levels of 40.45% for the Class A-1 and A-2 notes, 31.95% for the Class B notes, 19.55% for the Class C notes, 10.05% for the Class D notes, 5.90% for the Class E notes, and 1.60% for the Class F notes.
  • Credit enhancement consists of overcollateralization, subordination of junior notes, cash reserves and excess spread.
  • Westlake specializes in the acquisition and servicing of subprime, near-prime, and prime automobile retail installment contracts.

KBRA Assigns Preliminary Ratings to Sequoia Mortgage Trust 2020-3 (SEMT 2020-3)

Retrieved on: 
Monday, March 2, 2020
Banking, Professional services, Insurance, Money, Economy, Finance, Loans, Personal finance, Subprime mortgage crisis, Kroll Bond Rating Agency, Mortgage loan, Subprime lending

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to fifty-four classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2020-3 (SEMT 2020-3), a prime RMBS transaction.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to fifty-four classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2020-3 (SEMT 2020-3), a prime RMBS transaction.
  • SEMT 2020-3 contains both non-conforming (93.5%) and conforming (6.5%) collateral to borrowers with prime attributes.
  • The SEMT 2020-3 mortgage pool is composed of 770 first-lien mortgage loans with an aggregate principal balance of $632,615,469 as of the cut-off date.
  • The weighted average original credit score is 775, which is within the prime mortgage range.

KBRA Assigns Preliminary Ratings to J.P. Morgan Mortgage Trust 2020-2 (JPMMT 2020-2)

Retrieved on: 
Wednesday, February 19, 2020
Other Professional Services, Professional services, Finance, Finance, Money, Economy, Kroll Bond Rating Agency, Mortgage loan, Structured finance, Subprime lending, Mortgage-backed security

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 51 classes of mortgage pass-through certificates from J.P. Morgan Mortgage Trust 2020-2 (JPMMT 2020-2).

Key Points: 
  • Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 51 classes of mortgage pass-through certificates from J.P. Morgan Mortgage Trust 2020-2 (JPMMT 2020-2).
  • J.P. Morgan Mortgage Trust 2020-2 (JPMMT 2020-2) is a prime RMBS transaction comprising 1,105 residential mortgages with an aggregate principal balance of $781.9 million as of the February 1, 2020 cut-off date.
  • The underlying collateral includes both prime jumbo (58.6%) and conforming (41.4%) mortgage loans, all of which have been designated as Qualified Mortgages (QM).
  • This analysis is further described in our U.S. RMBS Rating Methodology.

KBRA Assigns Preliminary Ratings to Flagstar Mortgage Trust 2020-1INV (FSMT 2020-1INV)

Retrieved on: 
Thursday, February 13, 2020
Banking, Professional services, Insurance, Finance, Finance, Money, Economy, Kroll Bond Rating Agency, Flagstar Bank, Mortgage loan, Subprime lending, RMBS

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 37 classes of mortgage pass-through certificates from Flagstar Mortgage Trust 2020-1INV (FSMT 2020-1INV), the 11th prime RMBS transaction issued by Flagstar Bank, FSB (Flagstar) through its FSMT shelf.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 37 classes of mortgage pass-through certificates from Flagstar Mortgage Trust 2020-1INV (FSMT 2020-1INV), the 11th prime RMBS transaction issued by Flagstar Bank, FSB (Flagstar) through its FSMT shelf.
  • The transaction is backed by agency-eligible investment-purpose mortgage loans.
  • The FSMT 2020-1INV pool comprises 1,124 first-lien, prime residential mortgage loans with an aggregate principal balance of $340.1 million as of the February 1, 2020 cut-off date.
  • The weighted average original credit score is 765, which is well within the prime mortgage range.

KBRA Assigns Preliminary Ratings to CSMC 2020-AFC1 Trust (CSMC 2020-AFC1)

Retrieved on: 
Tuesday, February 11, 2020
Banking, Professional services, Finance, Economy, Money, Finance, Loans, Personal finance, Mortgage loan, Loan-to-value ratio, Subprime lending, Kroll Bond Rating Agency

Kroll Bond Rating Agency, Inc. (KBRA) assigns preliminary ratings to six classes of mortgage-backed notes from CSMC 2020-AFC1 Trust (CSMC 2020-AFC1), a $370.8 million non-prime RMBS transaction.

Key Points: 
  • Kroll Bond Rating Agency, Inc. (KBRA) assigns preliminary ratings to six classes of mortgage-backed notes from CSMC 2020-AFC1 Trust (CSMC 2020-AFC1), a $370.8 million non-prime RMBS transaction.
  • CSMC 2020-AFC1 Trust (CSMC 2020-AFC1) is sponsored by DLJ Mortgage Capital, Inc. All of the loans in the transaction were purchased from a single originator, AmWest Funding Corp. (AmWest), and underwritten to their guidelines.
  • The underlying pool, comprising 822 residential mortgages, is generally characterized by newly-originated, non-prime collateral with low original loan-to-value (LTV) ratios and alternative income documentation.
  • The mortgage loans, seasoned approximately five months, are predominantly hybrid adjustable-rate mortgages (ARMs) with initial fixed rate periods of seven years (66.4%).

KBRA Assigns Preliminary Ratings to Wells Fargo Mortgage Backed Securities Trust 2020-1 (WFMBS 2020-1)

Retrieved on: 
Friday, February 7, 2020
Professional services, Finance, Finance, Money, Structured finance, Economy, United States housing bubble, Mortgage-backed security, Mortgage loan, Subprime lending, Super jumbo mortgage, Collateralized debt obligation

Wells Fargo Mortgage Backed Securities Trust 2020-1 (WFMBS 2020-1) is a prime RMBS transaction comprising 766 residential mortgages with an aggregate principal balance of $584.0 million as of the February 1, 2020 cut-off date.

Key Points: 
  • Wells Fargo Mortgage Backed Securities Trust 2020-1 (WFMBS 2020-1) is a prime RMBS transaction comprising 766 residential mortgages with an aggregate principal balance of $584.0 million as of the February 1, 2020 cut-off date.
  • The underlying collateral includes both prime jumbo non-confirming loans (95.5%) and conforming mortgages (4.5%), all of which have been designated as Qualified Mortgages (QM).
  • KBRAs rating approach incorporated loan-level analysis of the mortgage pool through its Residential Mortgage Default and Loss Model, an examination of the results from third-party loan file due diligence, cash flow modeling analysis of the transactions payment structure, reviews of key transaction parties and an assessment of the transactions legal structure and documentation.
  • This analysis is further described in our U.S. RMBS Rating Methodology.

KBRA Assigns Preliminary Ratings to Sequoia Mortgage Trust 2020-2 (SEMT 2020-2)

Retrieved on: 
Thursday, February 6, 2020
Banking, Professional services, Finance, Economy, Money, Finance, Subprime mortgage crisis, Loans, Personal finance, Kroll Bond Rating Agency, Mortgage loan, Subprime lending

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 55 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2020-2 (SEMT 2020-2), a prime RMBS transaction.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 55 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2020-2 (SEMT 2020-2), a prime RMBS transaction.
  • SEMT 2020-2 contains both non-conforming (90.2%) and conforming (9.8%) collateral to borrowers with prime attributes.
  • The SEMT 2020-2 mortgage pool is composed of 656 first-lien mortgage loans with an aggregate principal balance of $501,164,975 as of the cut-off date.
  • The weighted average original credit score is 766, which is within the prime mortgage range.

KBRA Assigns Preliminary Ratings to Connecticut Avenue Securities, Series 2020-R02 (CAS 2020-R02)

Retrieved on: 
Monday, February 3, 2020
Professional services, Finance, Finance, Money, Economy, Mortgage industry of the United States, Mortgage-backed security, United States housing bubble, Mortgage, Real estate mortgage investment conduit, Loans, Kroll Bond Rating Agency, Subprime lending, Credit risk

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 57 classes from Connecticut Avenue Securities, Series 2020-R02 (CAS 2020-R02), a credit risk sharing transaction structured as a real estate mortgage investment conduit (REMIC) under the CAS shelf.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 57 classes from Connecticut Avenue Securities, Series 2020-R02 (CAS 2020-R02), a credit risk sharing transaction structured as a real estate mortgage investment conduit (REMIC) under the CAS shelf.
  • The CAS 2020-R02 Reference Pool consists of 110,537 residential mortgage loans with an aggregate cut-off balance of approximately $29.1 billion.
  • The loans in the Reference Pool (Reference Obligations) are fully documented, fully amortizing, fixed-rate mortgages (FRMs) of prime quality.
  • The borrowers in the Reference Pool have a WA original credit score of 743 and a WA debt-to-income (DTI) ratio of 37.6%.

KBRA Assigns Preliminary Ratings to RCKT Mortgage Trust 2020-1 (RCKT 2020-1)

Retrieved on: 
Thursday, January 30, 2020
Professional services, Finance, Economy, Money, Finance, Loans, Personal finance, Mortgage, Mortgage loan, Subprime lending, Kroll Bond Rating Agency, Fixed-rate mortgage, Super jumbo mortgage

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 35 classes of mortgage pass-through certificates from RCKT Mortgage Trust 2020-1 (RCKT 2020-1), a prime jumbo RMBS transaction backed entirely by loans originated and serviced by Quicken Loans Inc.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 35 classes of mortgage pass-through certificates from RCKT Mortgage Trust 2020-1 (RCKT 2020-1), a prime jumbo RMBS transaction backed entirely by loans originated and serviced by Quicken Loans Inc.
  • The RCKT 2020-1 pool comprises 489 first-lien, prime residential mortgage loans with an aggregate principal balance of $365,830,933 as of the February 1, 2020 statistical cut-off date.
  • The collateral consists of 30-year fully amortizing, fixed rate mortgages (FRMs).
  • The pool is characterized by significant borrower equity in each mortgaged property, as evidenced by the WA original LTV of 68.1% and WA original CLTV of 68.2%.

KBRA Assigns Preliminary Ratings to J.P. Morgan Mortgage Trust 2020-1 (JPMMT 2020-1)

Retrieved on: 
Wednesday, January 22, 2020
Banking, Professional services, Insurance, Finance, Finance, Money, Economy, Mortgage industry of the United States, Loans, Personal finance, Kroll Bond Rating Agency, Mortgage loan, Subprime lending, Jumbo mortgage, Mortgage-backed security

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 51 classes of mortgage pass-through certificates from J.P. Morgan Mortgage Trust 2020-1 (JPMMT 2020-1).

Key Points: 
  • Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 51 classes of mortgage pass-through certificates from J.P. Morgan Mortgage Trust 2020-1 (JPMMT 2020-1).
  • J.P. Morgan Mortgage Trust 2020-1 (JPMMT 2020-1) is a prime RMBS transaction comprising 1,056 residential mortgages with an aggregate principal balance of $776.6 million as of the January 1, 2020 cut-off date.
  • The underlying collateral includes both prime jumbo loans (74.3%) and high-balance conforming mortgages (25.7%), all of which have been designated as Qualified Mortgages (QM).
  • This analysis is further described in our U.S. RMBS Rating Methodology.