FirstKey Mortgage, an entity linked to Cerberus Capital Management, is planning a securitization of reperforming residential mortgages, according to Fitch Ratings.

The $396 million Towd Point Mortgage Trust 2015-1 is backed primarily (83.7%) by loans that were once delinquent and have been making payments for the past 24 months, which Fitch identifies as "clean current."

The remaining loans used as collateral (16.3%) are current but have recent delinquencies, which Fitch refers to as "dirty current" (16.3%). No loans were past due 30 or more days as of the cutoff date and roughly 88% have received modifications.

Roughly 68.8% of the loans are fully amortizing, while 31.2% are still in their interest-only periods. Servicing of the loans will be performed by Select Portfolio Servicing. There is no master servicer for the transaction.

Certain special-purpose entities owned by affiliates of Cerberus Capital Management obtained the loans in the pool through seven purchases in the secondary market in 2014.

B of A Merrill Lynch is the underwriter.

Fitch has assigned an AAA rating to the senior, $209 million tranche, which benefits from credit enhancement of 47%.

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