A pool of first-lien, fixed-rate prime mortgages will support about $363.6 million in residential mortgage-backed securities (RMBS) coming to market from the PMT Loan Trust 2026-J6.
The current transaction has the largest collateral pool that the platform has issued from all year, with 294 loans. It also has the highest percentage of conforming loans, at 45.1%, according to Morningstar DBRS.
PMT Loan Trust will issue notes through class A and B notes, including initial exchangeable and exchangeable notes, DBRS said. They are expected to pay interest rates that include 6.00% on the A1 notes; 5.50% on the A2 notes; 5.00% on the A33 notes; and 0.90% on several tranches of initial exchangeable, exchangeable and interest-only notes, the rating agency said.
PennyMac Corp, the deal sponsor, originated the notes, and is the seller and servicer.
Morgan Stanley & Co.,
The deal will make repayments to investors on the 25th day of the month or the next business day, with a final scheduled distribution date of October 2057.
The deal structure includes pro rata payments to classes including A6, A-18, A-21, A-24, A-30, A-X1 and A-X30, the rating agency said. After the credit support depletion date, the deal will pay the senior principal payment sequentially to the A6, A18 and A21 tranches, and pay principal pro rata to the A24 tranche until the balance is paid off, DBRS said.
The deal will then move to paying current and unpaid interest to classes B1 through B6 sequentially. After that, the deal will make principal payments pro rata for classes B1 through B6, the rating agency said.
The underlying mortgages are financing the purchases of single-family homes used as primary residences, mainly, the rating agency said.
On a weighted average (WA) basis, borrowers on the deal have annual income of $595,649, and non-zero WA liquid reserves of $830,519, the rating agency said.
DBRS has assigned ratings including (P) AAA (sf) on the A1 through the A27 notes; (P) AA (high) (sf) to the A28 through B1 tranches; then (P) AA (high) (sf) through (P) B (low) (sf) on the B2 through B5 notes.
