Kroll Bond Rating Agency Assigns Preliminary Ratings to FirstKey Mortgage Trust 2014-1 (FirstKey 2014-1)

NEW YORK--()--Kroll Bond Rating Agency, Inc. (KBRA) assigns preliminary ratings to thirty-seven classes of mortgage pass-through certificates from FirstKey Mortgage Trust 2014-1 (FirstKey 2014-1), a prime jumbo RMBS transaction.

FirstKey 2014-1 represents the first prime jumbo RMBS transaction for FirstKey Mortgage, LLC, the residential mortgage arm of FirstKey Holdings, Inc. The underlying collateral pool consists of 401 first-lien, residential mortgage loans with an aggregate principal balance of $285,984,195 as of the cut-off date. The pool is composed entirely of 30-year fixed-rate mortgages, all of which are fully amortizing. The pool is characterized by substantial borrower equity in each mortgaged property, as evidenced by the weighted average (WA) loan-to-value (LTV) and combined LTV (CLTV) ratios of 70.4% and 70.7%, respectively. The WA CLTV incorporates 2.3% of the pool possessing known junior mortgages. The WA original credit score of the mortgage pool is 767, 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, FirstKey Mortgage Trust 2014-1, which was published on November 17, 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

Kroll Bond Rating Agency, Inc.
Analytical Contacts:
Michele Patterson, 646-731-2397
mpatterson@kbra.com
or
Patrick Gervais, 646-731-2426
pgervais@kbra.com
or
Follow us on Twitter!
@KrollBondRating

Contacts

Kroll Bond Rating Agency, Inc.
Analytical Contacts:
Michele Patterson, 646-731-2397
mpatterson@kbra.com
or
Patrick Gervais, 646-731-2426
pgervais@kbra.com
or
Follow us on Twitter!
@KrollBondRating