New RMBS Deal Comes To Market Backed By Majority Non-QM Collateral

Originated by Caliber Home Loans, the $161.7 million COLT 2016-1 Mortgage Loan Trust “sailed through the market this week…to price the top piece…tight of guidance”, according to DebtWire

According to a Fitch Ratings Presale Report, it is the first transaction Fitch has rated collateralized with a majority of Non-QM mortgages, as defined by the ATR Rule. Fitch rated the most senior class “Asf”, with 44.7 percent credit enhancement, citing 100 percent full documentation and diligence review, the operational controls of the Originator, and the quality of the Servicer and Master Servicer as transaction positives but also cited non-QM and HPQM concentration, 47 percent of borrowers with recent credit events, loans with TRID exceptions, and a Rep and Warrant framework that did not include the automatic review of defaulted loans as transaction concerns.

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