Donna M. Mitchell

DRMT 2026-INV1, is backed by a pool of 1,153 non-prime investment property mortgages, which have a moderate leverage levels of an original, combined loan-to-value (CLTV) ratio of 69.9%.

The moderate leverage reflects the quality of RMBS pools from recent issuance years. Borrowers have a non-zero WA annual income of $1 million, with liquid reserves of $594,348.

The notes are expected to pay coupons of 4.94% on notes in the A1FCF tranche, rated AAA from KBRA and Fitch Ratings, to 6.78% on the B1 notes.

Largely strong credit qualities were offset because by loans on single-family homes in the pool dropping by 0.5%, and that the percentage of loans that received due diligence decreased by 0.4%.

With limited seasoning and primarily a clean payment history, OBX 2026-NQM1 had a seasoned probability of default of 33.3% among the AAA stresses and 11.4% among the B.

A significant portion of the loans in the pool by balance, 44.5%, are designated at non-QM, according to DBRS, adding that about 50% of the loans in the pool were made to investors for business purposes.

Principal will be distributed pro rata among the senior A1 through A3 certificates, and subordinate bonds will not receive any principal until all senior classes are reduced to zero.

Monthly excess spread will confer credit enhancement to the notes, KBRA said, and while it will be released it will not be available as credit enhancement in future payment periods.

After the end of the draw periods that range from two to five years, the amortization begins, during which borrowers have a repayment period ranging from three to 25 years.

This year Point has funded more than $2 billion in home equity investments to more than 20,000 homeowners nationwide.

The terms of NRMLT 2025-NQM7 will not allow it to advance principal and interest on loans that are delinquent by 180 days or more.

If cumulative loss or a delinquency trigger event is in effect, then the deal will distribute principal among the class A notes before any principal allocation the class M1 or class B certificates.

The transaction uses a shifting interest repayment structure, and its lockout that is subject to performance triggers.

SEMT 2025-12's collateral profile is slightly weaker compared with the prior transaction, with a slightly lower weighted average FICO score.

Second-lien mortgages make up the collateral pool. Those assets normally have a high expected loss severity, but the borrowers appear to be of prime credit quality.

Previously, Kim was a managing director in J.P. Morgan Chase & Co.'s strategic investments group, where she managed a diverse portfolio of fintech investments.

Most of the pool of 1,011 residential mortgages, 69.7%, are considered non-prime mortgages, primarily due to the documentation and styles of underwriting.

FFIN 2025-3's average loan balance, $16,366 was lower compared with the 2025-2 deal, when it was $19,993, and the WA interest rate on the current deal is 12.15%, down from 12.56%.

Overall, new 60-day-plus delinquencies totaled $2 billion, up from $1.69 billion in August, while maturity defaults accounted for half, or 51% ($1.05 billion) of new delinquencies.

Karsten Giesecke and Michael Karol join Morriello to represent clients such as lenders and private equity funds in transactions including RMBS, CMBS, franchise loans and esoteric assets.