Fitch Assigns Expected Ratings To Non-QM Offering STAR 2022-4 – NMP Skip to main content

Fitch Assigns Expected Ratings To Non-QM Offering STAR 2022-4

David Krechevsky
Jun 20, 2022
Fitch Ratings New logo.

Of the loans in the pool of 673 loans with a balance of approximately $357.4 million, 54.5% are designated as Non-QM.

Fitch Ratings has assigned expected ratings to Starwood Mortgage Residential Trust 2022-4.

Fitch said it expects to rate the residential mortgage-backed certificates to be issued by Starwood Mortgage Residential Trust 2022-4, series 2022-4 (STAR 2022-4), as follows:

  • A-1: AAAsf
  • A-2: AAsf
  • A-3: Asf
  • M-1: BBBsf
  • B-1: BB-sf
  • B-2: B-sf
  • B-3, XS, A-IO-S: Not rated.

The certificates are supported by 673 loans with a balance of approximately $357.4 million as of the cutoff date. This is the fourth Fitch-rated STAR transaction in 2022 and the 10th STAR transaction Fitch has rated since 2020, the company said.

The certificates are secured primarily by mortgage loans originated by third-party originators, with Luxury Mortgage Corp., HomeBridge Financial Services Inc., and CrossCountry Mortgage LLC sourcing 87.6% of the pool. The remaining 12.4% of the mortgage loans were originated by various originators that contributed less than 10% each to the pool. Select Portfolio Servicing Inc. is the servicer and Wells Fargo Bank is the master servicer.

Of the loans in the pool, 54.5% are designated as non-qualified mortgages (Non-QMs), while 45.5% are not subject to the Consumer Finance Protection Bureau's Ability to Repay Rule (ATR Rule).

The collateral consists of 31 adjustable-rate loans that reference one-month Secured Overnight Financing Rate (SOFR) and fixed rate loans. The class A-1 certificates will be fixed rate and capped at the net weighted average coupon (WAC) and will have a step-up feature where the coupon will equal the lesser of (a) the sum of (i) the class A-1 fixed rate (ii) 1.00% and (b) the net WAC Rate for the related Distribution Date; class A-2 and A-3 certificates are fixed rate and capped at the net (WAC), and the class M-1, B-1, B-2 and B-3 certificates are based on the net WAC.

The collateral consists of 15-year, 30-year, fixed-rate fully amortizing loans (77.4%); 17.3% fixed-rate loans with an initial interest-only (IO) term; 5.4% 7/1 and 10/1 adjustable-rate mortgages (ARMs) with an initial IO term. The pool is seasoned at approximately four months in aggregate, as determined by Fitch.

The full report is available at

Jun 20, 2022
More from
KBRA Assigns Preliminary Ratings To Non-QM Offering OBX 2022-NQM6

The $387.9 million non-prime RMBS transaction is characterized by a notable concentration of alternative income documentation (87.7%).

Jun 23, 2022
CFPB Director: Agency Reviewing QM Rules, Other Regulations

In a blog post, Rohit Chopra says the goal is to “more clearly communicate the agency’s expectations.”

Regulation and Compliance
Jun 21, 2022
Angel Oak Mortgage Adds 7 New Employees

Focus for Non-QM lender is on account executives.

Jun 20, 2022
FGMC Launches Non-QM Loan Program To Tap Equity

Explorer Equity program offers flexible guidelines and expanded credit parameters for borrowers who may not otherwise qualify.

Jun 16, 2022
KBRA Assigns Preliminary Ratings To Non-QM Offering VERUS 2022-6

The $524.5 million non-prime RMBS  transaction consists of mortgages originated by various lenders, including Castle Mortgage.

Jun 16, 2022
Deephaven Mortgage Hires Regional VP Of Wholesale Sales

Paul Howarth Responsible For Growing Wholesale Team In Western U.S.

Jun 09, 2022