
KBRA Assigns Preliminary Ratings to TRK 2021-INV2 Trust
First RMBS transaction sponsored by Toorak Capital Partners
Kroll Bond Rating Agency (KBRA) has assigned preliminary ratings to six classes of mortgage pass-through certificates from TRK 2021-INV2 Trust, a $322.7 million non-prime, investor cash flow RMBS transaction.
TRK 2021-INV2 represents the first RMBS transaction sponsored by Toorak Capital Partners, LLC. The underlying collateral consists of 1,092 rental property mortgages underwritten using debt service coverage ratios (DSCRs). All of the loans were originated for business purposes and are exempt from the Ability-to-Repay (ATR) and TILA-RESPA Integrated Disclosure (TRID) rules.
KBRA assigned preliminary ratings as follows:
- A-1: AAA
- A-2: AA+
- A-3: A+
- M-1: BBB+
- B-1: BB+
- B-2: B
- B-3, A-IO-S, XS, P, R: Not rated.0
The TRK 2021-INV2 pool is composed primarily of 30-year, fixed-rate mortgages (99.3% of the pool), and the loans exhibit a weighted average (WA) original credit score of 737, a WA original loan-to-value (LTV) of 70.9% and a WA original combined LTV (CLTV) of 70.9%. The WA original DSCR is approximately 1.4x coverage.
KBRA’s rating approach incorporated 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. KBRA also utilized its U.S. Single-Family Rental Securitization Methodology for analyzing the multi-property investor 1-4 loans in the pool.
To read the report, visit www.kbra.com.