Fitch Assigns Ratings To Starwood Mortgage Residential Trust 2021-5

Starwood Mortgage Residential Trust 2021-5 certificates are supported by 644 loans, with a balance of approximately $421.01 million as of the cutoff date, according to Fitch. 

“The certificates are secured primarily by mortgage loans that were originated by third-party originators, with Luxury Mortgage Corporation, HomeBridge Financial Services, Inc., CrossCountry Mortgage LLC, and Hometown Equity Mortgage LLC sourcing 92.1% of the pool,” according to the report.

The remaining mortgage loans were originated by various originators who contributed less than 5% each to the pool. Of the loans in the pool, 54.2% are designated as non-qualified mortgage (Non-QM) and 45.7% are investment properties not subject to the Ability to Repay (ATR) rule, while 0.1% of loans are designated as QM.

Fitch also reported that the borrowers in this pool have relatively strong credit profiles with a 741 weighted average (WA) FICO score and 45% DTI ratio, as determined by the company, and an original CLTV ratio of 66.8% that translates to a Fitch-calculated sLTV ratio of 74.2%.

“Of the pool, 50.5% consists of loans where the borrower maintains a primary residence, while 49.5% comprises an investor property or second home; 33.0% of the loans were originated through a retail channel,” according to Fitch. “Additionally, 54.2% are designated as non-QM, 0.1% are designated as QM and 45.7% are exempt from QM because they are investor loans.”