NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency, Inc. (KBRA) assigns preliminary ratings to 29 classes of mortgage pass-through certificates from J.P. Morgan Mortgage Trust 2015-5 (JPMMT 2015-5), a prime jumbo RMBS transaction.
The underlying collateral for JPMMT 2015-5 consists of 506 first-lien, residential mortgage loans with an aggregate principal balance of $489,644,220 as of the cut-off date. The pool is composed entirely of hybrid adjustable-rate mortgages (hybrid ARMs), with initial fixed-rate payment periods of five (30.6%), seven (65.8%) or ten (3.6%) years. All of the mortgage loans have 30-year maturity terms, with approximately 63.1% of the pool possessing interest-only (IO) periods of seven (0.2%) or ten (62.9%) years. The pool is characterized by substantial borrower equity in each mortgaged property, as evidenced by the weighted average (WA) original loan-to-value (LTV) ratio of 62.0% and WA combined LTV (CLTV) ratio of 64.5%. The CLTV ratio incorporates 17.6% of the pool possessing known junior mortgages. The weighted average original credit score of the mortgage pool is 761, 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 2015-5, which was published on July 27, 2015 at www.kbra.com.
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