KBRA Assigns Preliminary Rates To CSMC 2021-NQM7 Trust – NMP Skip to main content

KBRA Assigns Preliminary Rates To CSMC 2021-NQM7 Trust

Director of Events
Nov 01, 2021

Kroll Bond Rating Agency assigned preliminary ratings to six classes of mortgage pass-through notes from CSMC 2021-NQM7 Trust, a $334.2 million non-prime RMBS transaction.

The underlying collateral, comprising 502 residential mortgages, is characterized by a significant concentration of loans underwritten using alternative income documentation. The mortgage loans, seasoned approximately 10.4 months, include both fixed-rate mortgages (69.2%) and adjustable-rate mortgages (30.8%). Additionally, approximately 18.3% of the pool has an initial interest-only period.

Approximately 73.6% of the loans were categorized as non-qualified mortgages (Non-QM) under the Ability-toRepay/Qualified Mortgage (ATR/QM) rule. The remaining loans were either QM Safe Harbor (5.0%), QM Rebuttable Presumption (1.3%), or exempt from the ATR/QM rule due to being originated for business purposes (20.2%).

Borrowers in the subject pool possess a non-zero WA original credit score of 746 and exhibit substantial equity in each mortgaged property, with WA LTV and combined LTV (CLTV) ratios of 68.7% and 68.7%, respectively. The collateral consists of mortgages originated by various lenders, including AmWest Funding Corp. (AmWest; 25.2%), Sprout Mortgage, LLC (21.5%), and LendSure Mortgage Corp (12.0%), among others. All loans in the transaction will be serviced by AmWest (25.2%), Select Portfolio Servicing (SPS; 42.1%), Selene Finance LP (30.4%), and Fay Servicing (2.3%).

According to KBRA's ratings, there is minimal TRID compliance risk and some weaknesses among the representation and warranties framework. 

About the author
Director of Events
Navi Persaud is Director of Events at NMP.
Published
Nov 01, 2021
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