Kroll Bond Rating Agency Assigns Preliminary Ratings to J.P. Morgan Mortgage Trust 2014-IVR3 (JPMMT 2014-IVR3)

NEW YORK--()--Kroll Bond Rating Agency, Inc. (KBRA) assigns preliminary ratings to ten classes of mortgage pass-through certificates from J.P. Morgan Mortgage Trust 2014-IVR3 (JPMMT 2014-IVR3), a prime jumbo RMBS transaction.

The collateral pool backing JPMMT 2014-IVR3 consists of 551 first-lien, residential mortgage loans with an aggregate principal balance of $483,562,381 as of the September 1, 2014 cut-off date. The pool consists entirely of hybrid adjustable-rate mortgages (ARMs) with 30-year terms to maturity. Approximately 23.8% of the loans possess a 10-year interest-only period. The aggregate pool comprises three loan groups distinguished by their respective initial fixed-rate period, with mortgages featuring fixed-rate periods of 5 years (8.6% of the aggregate pool), 7 years (58.8%) and 10 years (32.6%). The pool is characterized by substantial borrower equity in each mortgaged property, as evidenced by the weighted average original loan-to-value (LTV) ratio of 67.7% and combined LTV ratio of (68.7%). The CLTV ratio incorporates 7.3% of the pool possessing junior mortgages. The weighted average credit score of the mortgage pool is 765, which is within the prime mortgage range.

KBRA’s rating approach incorporated loan-level analysis of the mortgage pool through its Residential Mortgage Default and Loss Model, an examination of the results from loan file reviews performed by independent third-party firms, 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.

For complete details on the analysis performed for this transaction, please see KBRA’s Pre-Sale Report, J.P. Morgan Mortgage Trust 2014-IVR3, which was published on September 23, 2014 at www.kbra.com.

Related publications:

U.S. RMBS Rating Methodology, published January 9, 2012

Residential Mortgage Default and Loss Model, published January 9, 2012

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Analytical Contacts:
Michele Patterson, 646-731-2397
mpatterson@kbra.com
or
Patrick Gervais, 646-731-2426
pgervais@kbra.com

Contacts

Analytical Contacts:
Michele Patterson, 646-731-2397
mpatterson@kbra.com
or
Patrick Gervais, 646-731-2426
pgervais@kbra.com