Skip to main content

KBRA Assigns Preliminary Ratings To RCKT 2021-4

David Krechevsky
Sep 20, 2021

Includes 1,002 Residential Mortgages With An Aggregate Principal Balance Of $968.4M

Kroll Bond Rating Agency (KBRA) has assigned preliminary ratings to 46 classes of mortgage pass-through certificates from RCKT Mortgage Trust 2021-4.

RCKT 2021-4 is a prime residential mortgage-backed security (RMBS) transaction issued by Woodward Capital Management LLC. It comprises 1,002 residential mortgages with an aggregate principal balance of $968.4 million as of the Sept. 1, 2021, cut-off date. The underlying collateral consists entirely of 30-year fixed-rate mortgages originated by Rocket Mortgage LLC, all of which are subject to the Ability-to-Repay/Qualified Mortgage (ATR/QM) rules.

The preliminary ratings assigned by KBRA are as follows:

  • A-4, A-10, A-12, A-16, A-22, A-X-1, A-X-3, A-X-6, A-X-7, A-X-9, and A-X-12: AAA
  • B-1, B-X-1: AA+
  • B-2, B-X-2: A+
  • B-3: BBB+
  • B-4: BB+
  • B-5: B+
  • B-6, R, LT-R: Not rated.

KBRA said its 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.

In December 2020, the Consumer Financial Protection Bureau (CFPB) issued the General QM Final Rule (QM 2.0) which took effect for loans with application dates on or after March 1, 2021. While mandatory compliance with QM 2.0 has not yet taken effect, all the mortgage loans in RCKT 2021-4 fall under the scope of the QM rules, with 100% of the loans designated as QM Safe Harbor (average prime offer rate) under QM 2.0.

All loans in the pool were originated after the World Health Organization declared a worldwide pandemic on March 11, 2020, which was followed by global lockdown orders. KBRA said it expects loans underwritten post-pandemic to benefit from positive selection and tightened employment verification standards. However, it said, this expectation is somewhat tempered for loans originated to self-employed borrowers, who were more adversely affected by the pandemic due to business closures and other COVID-related restrictions. RCKT 2021-4 has a self-employment percentage of 35.7%, which is larger than the approximate 20% average rate seen in prime RMBS 2020 and 2021 (YTD).

To view the full report, visit

Sep 20, 2021
MBA Swears In New Officers For 2021-22

Kristy Fercho, executive vice president and head of home lending at Wells Fargo, is the new chairman.

Industry News
Oct 18, 2021
Wemlo Introduces Third-Party Processing Solution

Wemlo announced the first third-party mortgage processing solution, Loan Brokering System.

Oct 18, 2021
Nationwide Mortgage Bankers Names New COO

Nate Hernandez was named chief operating officer for Nationwide Mortgage Bankers.

Industry News
Oct 18, 2021
ICE Unveils Transaction-Based Indices For Residential Mortgage Interest Rates

Intercontinental Exchange Inc. launched its suite of U.S. residential mortgage locked rate indices.

Oct 18, 2021
ChainLogix Appoints New Vice President, Operations

Jeryl Graham hired to accelerate growth in title & mortgage services.

Industry News
Oct 15, 2021
JPMorgan Chase To Commit $8.4M To Improve Household Stability For The Underserved

JPMorgan Chase announced six organizations that will receive philanthropic capital as part of the firm’s $400 million five-year commitment to improve housing affordability and stability for Black, Hispanic and Latino, and other underserved households.

Oct 15, 2021