KBRA Assigns Preliminary Ratings To Oceanview Mortgage Trust

Kroll Bond Rating Agency (KBRA) assigned preliminary ratings to 56 classes of mortgage pass-through certificates from Oceanview Mortgage Trust 2021-3 (OCMT 2021-3), a prime RMBS transaction, according to a press release. OCMT 2021-3 contains 100% QM: Safe Harbor jumbo mortgage loans, and no loans in the pool are in active forbearance as of the cut-off date.

The OCMT 2021-3 mortgage pool is composed of 386 first-lien mortgage loans with an aggregate principal balance of $351,471,382 as of the cut-off date. The underlying collateral consists entirely of fully-amortizing, fixed-rate mortgages. The pool is characterized by substantial borrower equity in each mortgaged property, as evidenced by the WA original LTV and WA original CLTV of 67.8% and 67.9%, respectively. The weighted average original credit score is 778, which is well within the prime mortgage range.

To conduct its rating, KBRA used its loan-level analysis of the mortgage pool through its U.S. RMBS Mortgage Default and Loss 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. This analysis is further described in our U.S. RMBS Rating Methodology.