DLJ Mortgage Sponsors CSMC 2021 Approximately $ 278 Million



Unowned and agency eligible mortgages will form the collateral structure in the CSMC 2021-INV1 Trust, a mortgage-backed securities transaction that will raise approximately $ 278 million in capital markets.

DLJ Mortgage Capital is sponsoring the deal. The collateral pool consists of 845 fixed rate mortgages. According to the Kroll Bond Rating Agency, investment property loans make up a significant portion of the collateral pool, 85.2%, while secondary housing loans make up 14.8% of the pool.

The average loan balance in the pool is US $ 329,000; have a weighted average initial loan to value ratio of 62.5% and an initial FICO estimate of 772. The loans comply with an underwriting standard that is fully documented, therefore collateral is considered first class.

In terms of geographic concentration, California accounts for 42.7% of the loans in the pool. The next largest concentration of loans is in Texas with 7.7%; and Colorado is 5.6%. Among the central statistical areas of business, Los Angeles represents 18.4%, followed by San Jose with 6.1% in underlying collateral.

The deal is based on a change in federal rules governing the limits on how many non-owner loans Fannie Mae and Freddie Mac can acquire. In January 2021, a specific rule set this limit for government-sponsored organizations at 7%, forcing senders to seek alternative sources of funding, KBRA explained.

Prior to these changes, non-owner mortgages represented a very modest amount of private label securities. The changes may change this as more borrowers seeking financing will seek alternative sources to replace the lowered PLS ratio.

KBRA Expects to Assign ‘AAA’ Rating to Priority Bond Tranche and Senior Support Tranche; “AA +” and “A +” ratings for bonds of classes B-1 and B-2, respectively; and “BBB +”, “BB +” and “B +” to subordinate tranches of notes.


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