The Kroll Bond rating agency (KBRA) has assigned preliminary ratings to 60 classes of Oceanview Mortgage Trust 2022-INV1 (BVINV 2022-1) mortgage transfer certificates.
The transaction is backed by prime mortgages, primarily agency-eligible, for investment purposes. The BVINV 2022-1 pool consists of 1,196 fixed rate first mortgages with a total principal balance of $ 393.4 million as of the deadline of December 1, 2021. The pool is characterized by significant equity capital. of the borrower in each mortgaged property, as evidenced by the weighted average loan to initial value (WA) ratio of 65.6%. The initial weighted average credit score is 769, which is well within the range for prime mortgages.
KBRA assigned the preliminary scores as follows:
- A-6, A-15, A-18, AF, AX, A-21, A-IO1, A-IO6, A-IO7, A-IO15, A-IO16, A-IO18, A-IO19, A- IO22, A-IO23, A-IO24: AAA
- B-1: AA +
- B-2: A +
- B-3A: BBB +
- B-3B: BBB-
- B-4: BB-
- B-5: B-
- B-6, A-IO-S, X, R, RL: not classified
KBRA’s scoring approach included a loan-level analysis of the mortgage pool through its RMBS credit model, a review of the results of due diligence of third-party loan files, a cash flow modeling analysis of the payment structure of the transaction, reviews of key parties to the transaction, and an assessment of the legal structure and documentation of the transaction.
BVINV 2022-1 is entirely made up of investment real estate loans. Investor properties have generally shown a greater propensity to default compared to owner-occupied homes and are generally more susceptible to speculation and potentially uncertain sources of income. T
BVINV 2022-1 is fully mortgage-backed for investment purposes with limited exposure to Qualified Mortgage (QM) / Repayment Ability (ATR) rules. The majority of mortgages for investment property are considered business loans and are therefore exempt from the QM, ATR and TILA-RESPA Integrated Disclosure (TRID) rules. Only 0.3% of the pool’s loans are non-QM loans.
For more information or to read the full report, visit www.kbra.com (registration required).