NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 37 classes of mortgage pass-through certificates from Flagstar Mortgage Trust 2020-1INV (FSMT 2020-1INV), the 11th prime RMBS transaction issued by Flagstar Bank, FSB (Flagstar) through its FSMT shelf. The transaction is backed by agency-eligible investment-purpose mortgage loans.
The FSMT 2020-1INV pool comprises 1,124 first-lien, prime residential mortgage loans with an aggregate principal balance of $340.1 million as of the February 1, 2020 cut-off date. The collateral consists entirely of fully amortizing, fixed rate mortgages (FRMs). The pool is characterized by significant borrower equity in each mortgaged property, as evidenced by the WA original LTV of 66.5% and WA original CLTV of 66.5%. The weighted average original credit score is 765, which is well 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 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. This analysis is further described in our U.S. RMBS Rating Methodology.
To access ratings, reports and disclosures, click here.
Related Publications: (available at www.kbra.com)
- Flagstar Mortgage Trust 2020-1INV Pre-Sale Report
- Flagstar Mortgage Trust 2020-1INV Tear Sheet
- RMBS KBRA Comparative Analytic Tool (KCAT)
- U.S. RMBS Rating Methodology
- Residential Mortgage Default and Loss Model
- U.S. RMBS Rating Methodology for Assessing Non-QM Risk
- Global Structured Finance Counterparty Methodology
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KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.