The
GS Mortgage-Backed Securities Trust, 2026-R1 will issue the notes through seven tranches of classes A, M and B notes, which all have a final scheduled maturity date of April 2063, according to fixed-income analysts at Fitch Ratings.
A majority of the loans, 57.34%, are for cashout purposes, but the entire loan pool are first-liens, and are of modest leverage, with an original cumulative loan-to-value (LTV) ratio of 69.74%, Fitch said.
The A1, A2 and A3 notes benefit from credit enhancement levels of 21.40%, 16.85% and 9.50%, respectively, Fitch said. The mezzanine tranche enjoys credit support representing 10.93% of the account balance. Classes B1 and B2 benefit from credit enhancement levels of 3.65% and 2.25%, the rating agency said.
GS MBS 2026-R1 is expected to close by March 31 and repays investors through a modified sequential structure, Fitch said. Interest payments are distributed sequentially, while potential shortfalls are allocated in reverse sequential order.
Class A certificates will receive principal repayments on a pro rata basis, while the subordinate certificates will be shut out from any repayments until the balances on the three senior classes have been reduced to zero, Fitch said.
Single family and multifamily homes account for 62.79% and 29.97%, of the 911 loans in the pool, according to Fitch. Mixed-use properties also account for a notable percentage of the pool, 31.01%, the rating agency said.
Debt service coverage ratio (DSCR) documentation accounts for a sizeable majority of the underwriting, 69.03%, the rating agency said. Bank statements and full documentation account for 20.58% and 9.06% of the pool, respectively.
Borrowers have a FICO score of 738 and debt-to-income ratio of 34.50%.
Fitch assigns AAA, AA and A to the A1, A2 and A3 notes; BBB for the M1 tranche; and BB and B to the B1 and B2, classes, respectively.
