KBRA assigns preliminary valuations to the 100 Acre Wood Trust 2021-INV1 (HAWT 2021-INV1)
NEW YORK–(BUSINESS WIRE) – The Kroll Bond Rating Agency (KBRA) issues preliminary ratings to 57 classes of mortgage pass-through certificates from the Hundred Acre Wood Trust 2021-INV1 (HAWT 2021-INV1). HAWT 2021-INV1 is the first first-class securitization of non-owner-occupied loans (NOO) that can be considered by an agency, in which not only investment properties (75.3%) but also second homes (24.7%) are included in a significant concentration . It is also the first mortgage-backed residential real estate (RMBS) transaction to be sponsored and sold by Finance of America Mortgage LLC (FAM).
The HAWT 2021-INV1 pool comprises 971 fixed-rate residential mortgage loans with a total capital of USD 301.5 million as of May 1, 2021. The pool is characterized by significant borrower equity in each mortgage property, which is reflected in the original WA LTV of 63.4% and the original CLTV of 63.4% is occupied. The weighted average initial credit score is 764, which is well in line with the home mortgage range.
KBRA’s rating approach included an analysis of the mortgage pool at the loan level via the RMBS credit model, a review of the results of the due diligence on third-party credit files, an analysis of the payment structure modeling of the cash flow modeling, reviews of the key transaction parties and an assessment of the legal structure and documentation the transaction. This analysis is further described in our US RMBS rating method.
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Learn more about key credit considerations, sensitivity studies that take into account what factors can affect those credit ratings and how they can lead to an upgrade or downgrade, and ESG factors (where they are a major driver of a change in creditworthiness or the rating outlook) are detailed in the full rating report mentioned above.
A description of all material sources used to establish the rating and information on the methods (including all material models and sensitivity analyzes of the relevant material rating assumptions, if applicable) used to determine the rating are available on the forms to disclose information Here.
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Kroll Bond Rating Agency, LLC (KBRA) is a full-service rating agency registered with the US Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority under the Temporary Registration Regime. In addition, KBRA is named by the Ontario Securities Commission as the designated rating organization for issuers of asset-backed securities for the purpose of filing a short prospectus or a shelf prospectus. KBRA is also recognized as a rating provider by the National Association of Insurance Commissioners.