Imperial Fund Mortgage seeks to raise $322.8 million on a diversified portfolio of fixed rate mortgages

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Imperial Fund Mortgage Trust returns to raise capital markets funds, this time issuing $322.8 million of mortgage-backed securities secured by a diverse pool of fixed and resettable prime mortgages and first-tier and non-preferred.

Called Imperial Fund Mortgage Trust 2022-NQM7, the transaction is expected to close on November 25, according to Morningstar | DBRS. FitchRatings noted that pool mortgages are highly concentrated, with 48.9% of home loans made to borrowers in Florida and 20.4% in New York.

Fitch notes that Nomura Securities International is the lead underwriter for the transaction, which will issue notes through a modified senior-subordinated structure. The structure of Imperial Fund Mortgage Trust 2022-NQM7 allocates capital pro rata among Class A Notes. Subordinated Notes will be excluded from principal payments until the outstanding Class A-1 through A-3 Notes are reduced to zero, according to Fitch.

Several types of mortgages are in the collateral pool, which includes 742 mortgages, the rating agencies said. Most loans in the pool, 56.4%, are not subject to the Consumer Financial Protection Bureau (CFPB) repayment capacity rule, while 43.4% of loans are designated as unsecured mortgages. eligible.

A&D Mortgage originated 94.7% of the loans in the pool, and the company’s correspondent lenders originated the remaining 5.3%, according to Fitch. Nationstar Mortgage will act as a master servicer, according to rating agencies. Almost the entire pool, 99.7%, is made up of fixed rate mortgages.

DBRS noted that among the strengths of the deal include strong combined loan-to-value ratios, borrowers’ household incomes and cash reserves. The initial combined weighted average (WA) LTV was 72.1%.

On a WA basis, the loans have a FICO model of 725 and the borrowers have liquid reserves of $163,037.

Single-family homes, including planned unit developments and townhouses, make up 72.1% of the pool, with condominiums and multi-family properties making up 27.9% of the pool.

Fitch plans to assign ratings ranging from “AAA” to “A-” on grades A-1 through A-3, and “BBB-” on M-1 grades.

DBRS plans to assign “AAA” to “A” on classes A-1 through A-3; “BBB” on the $16.7 million M-1 Notes; and “BB” and “B” on classes B-1 and B-2, respectively.

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