NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 25 classes of mortgage pass-through certificates from Provident Funding Mortgage Trust 2020-1 (PFMT 2020-1), the second post-crisis private label securities (PLS) transaction backed entirely by agency conforming consumer-purpose residential mortgage loans. The loans are originated and serviced by Provident Funding Associates, LP.
The PFMT 2020-1 pool comprises 1,171 first-lien, prime residential mortgage loans with an aggregate principal balance of $415,684,032 as of the February 1, 2020 cut-off date. The collateral consists of 30-year fully amortizing, fixed rate mortgages (FRMs). The pool is characterized by significant borrower equity in each mortgaged property, as evidenced by the WA original LTV of 66.7% and WA original CLTV of 67.0%. The weighted average original credit score is 771.
KBRA’s rating approach incorporated loan-level analysis of the mortgage pool through its Residential Mortgage Default and Loss Model, an examination of the results from third-party loan file due diligence, cash flow modeling analysis of the transaction’s payment structure, reviews of key transaction parties and an assessment of the transaction’s legal structure and documentation. This analysis is further described in our U.S. RMBS Rating Methodology.
To access ratings, reports and disclosures, click here.
Related Publications: (available at www.kbra.com)
- PFMT 2020-1Pre-Sale Report
- PFMT 2020-1 Tear Sheet
- PFMT 2020-1 Representations & Warranties Disclosure
- RMBS KBRA Comparative Analytic Tool (KCAT)
- Residential Mortgage Default and Loss Model
- U.S. RMBS Rating Methodology
- Global Structured Finance Counterparty Methodology
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KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
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