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KBRA Assigns Preliminary Ratings To BVINV 2022-1

Jan 04, 2022
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Pool consists of 1,196 first-lien, fixed-rate mortgages with an aggregate principal balance of $393.4M as of the Dec. 1, 2021.

Kroll Bond Rating Agency (KBRA) has assigned preliminary ratings to 60 classes of mortgage pass-through certificates from Oceanview Mortgage Trust 2022-INV1 (BVINV 2022-1). 

The transaction is backed by prime, predominantly agency-eligible, investment-purpose mortgage loans. The BVINV 2022-1 pool consists of 1,196 first-lien, fixed-rate mortgages with an aggregate principal balance of $393.4 million as of the Dec. 1, 2021 cut-off date. The pool is characterized by significant borrower equity in each mortgaged property, as evidenced by the weighted average (WA) original loan-to-value of 65.6%. The weighted average original credit score is 769, which is well within the prime mortgage range.

KBRA assigned the preliminary ratings as follows:

  • A-6, A-15, A-18, A-F, A-X, A-21, A-IO1, A-IO6, A-IO7, A-IO15, A-IO16, A-IO18, A-IO19, A-IO22, A-IO23, A-IO24: AAA
  • B-1: AA+
  • B-2: A+
  • B-3A: BBB+
  • B-3B: BBB-
  • B-4: BB-
  • B-5: B-
  • B-6, A-IO-S, X, R, RL: Not rated

KBRA’s rating approach incorporated loan-level analysis of the mortgage pool through its RMBS Credit Model, an examination of the results from third-party loan file due diligence, cash flow modeling analysis of the transaction’s payment structure, reviews of key transaction parties and an assessment of the transaction’s legal structure and documentation. 

BVINV 2022-1 consists entirely of investment property loans. Investor properties have typically exhibited a higher propensity for default relative to owner-occupied homes and are generally more susceptible to speculation and potentially uncertain income sources. T

BVINV 2022-1 is backed entirely by investment-purpose mortgage loans with limited exposure to the Qualified Mortgage (QM)/Ability-to-Repay (ATR) rules. The majority of the investment property mortgage loans are considered to be business purpose loans and are thus exempt from the QM, ATR and TILA-RESPA Integrated Disclosure (TRID) rules. Just 0.3% of loans in the pool are non-QM loans.

For more information or to read the full report, visit www.kbra.com (registration required).

 

About the author
David Krechevsky was an editor at NMP.
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