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Fitch Assigns Expected Ratings To Non-QM Offering

May 20, 2022
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Certificates are supported by 909 loans originated by A&D Mortgage with a balance of approximately $392.11 million.

Fitch Ratings has assigned expected ratings to Imperial Fund Mortgage Trust 2022-NQM4 (IMPRL 2022-NQM4).

IMPRL 2022-NQM4 consists of residential mortgage-backed certificates supported by 909 loans with a balance of approximately $392.11 million as of the cutoff date. This is IMPRL's ninth transaction and the fourth to be rated by Fitch.

Fitch said it expects to assign the ratings as follows:

  • A-1: AAA
  • A-2: AA-
  • A-3: A-
  • M-1: BBB-
  • B-1, B-2, B-3, X, A-IO-S, R: Not rated

Fitch said it was asked to rate only the class A-1, A-2, A-3 and M-1 certificates.

The certificates are secured primarily by newly originated, fixed-rate mortgage loans, with 91.2% of the pool originated by A&D Mortgage LLC, and the remaining 8.8% originated by one of A&D Mortgage's correspondent lenders.

Of the loans in the pool, 39.1% are designated as non-qualified mortgages (non-QM), 0.2% are designated as safe harbor qualified mortgages (SHQM), and 60.7% are not subject to the Consumer Finance Protection Bureau's (CFPB) Ability to Repay Rule (ATR Rule).

There is no LIBOR exposure in this transaction. The collateral consists of 99.6% fixed-rate loans and the loans that are adjustable rate are not based on the LIBOR index. The coupons on the interest-bearing bonds are fixed rate and capped at the net WAC or are based on the net WAC.The full report is available at www.fitchratings.com.

About the author
David Krechevsky was an editor at NMP.
Published
May 20, 2022
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