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Fitch Rates EFMT 2023-1 Non-QM Securitization Supported By LendSure, AHL

David Krechevsky
Feb 08, 2023
Fitch Ratings

The residential mortgage-backed certificates are supported by 796 loans with a balance of $330.37 million.

Fitch Ratings said Tuesday it has assigned final ratings to EFMT 2023-1, residential mortgage-backed certificates supported by non-qualified mortgages originated by LendSure Mortgage Corp. and American Heritage Lending (AHL).

EFMT 2023-1, Mortgage Pass-Through Certificates, Series 2023-1, are supported by 796 loans with a balance of $330.37 million as of the cutoff date, Fitch said. It is the eighth EFMT transaction rated by Fitch and EFMT’s first transaction in 2023.

The certificates are secured mainly by Non-QM loans as defined by the Ability to Repay (ATR) rule. Approximately 48.8% of the loans were originated by LendSure, a joint venture between LendSure Financial Services Inc. and Ellington Financial Inc. Approximately 23.8% of the loans were originated by AHL. The remaining 27.4% were originated by other third-party originators that contributed no more than 10% each to the pool, Fitch said.

Of the pool, 57.75% of the loans are designated as Non-QM; the remaining 42.25% are investment properties not subject to ATR. 

Fitch's analysis of the pool, determined that self-employed, non-debt service coverage ratio (non-DSCR) borrowers make up 50.4% of the pool; salaried non-DSCR borrowers make up 16.2%; and 33.4% (33.5% per the transaction documents) comprises investor cash flow DSCR loans

Fitch assigned its ratings as follows:

  • A-1: AAA (sf)
  • A-2: AA (sf)
  • A-3: A (sf)
  • M-1: BBB (sf)
  • B-1: BB (sf)
  • B-2: B (sf)
  • B, A-IO-S, X, R: Not rated.

Rushmore Loan Management Services LLC will be the servicer, and Nationstar Mortgage LLC will be the master servicer for the transaction.

To read the full report, visit

Feb 08, 2023
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