NEW YORK–(BUSINESS WIRE)–KBRA assigns preliminary ratings to four classes of mortgage transfer certificates of TRK 2022-INV1 Trust, a $363.3 million non-priority investor cash flow RMBS transaction. TRK 2022-INV1 represents the third RMBS transaction sponsored by Toorak Capital Partners, LLC. The underlying collateral consists of 1,254 rental property mortgages underwritten using debt service coverage ratios (DSCR). All loans were created for business purposes and are exempt from the Capacity to Repay (ATR) and TILA-RESPA Integrated Disclosure (TRID) rules.

The TRK 2022-INV1 pool is comprised primarily of 30-year fixed rate mortgages (96.7% of the pool), and the loans have an initial weighted average (WA) credit score of 742, an initial loan-to-value ratio WA (LTV) of 72.4% and a combined original WA (CLTV) LTV of 72.4%. WA’s original DSCR has about 1.4x coverage.

KBRA’s scoring approach incorporated loan-level analysis of the mortgage pool through its US RMBS Mortgage Default and Loss Model, due diligence results review of third-party loan records, analysis cash flow modeling of the payment structure of the transaction, reviews of key transaction parties and an assessment of the legal structure and documentation of the transaction. This analysis is further described in our US RMBS Rating Methodology. KBRA also used its US CMBS Multi-Borrower Rating Methodology and US CMBS Property Valuation Methodology to analyze multi-family properties and its US Single-Family Lease Securitization Methodology to analyze certain multi-property investor loans 1-4 in the pool.

Click here to see the report. To access relevant notes and documents, click here.

Related Publications

Disclosures

Further information on key credit considerations, sensitivity analyzes which look at factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a driver key to the change in credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially significant sources that were used to prepare the credit rating and information on the methodology(ies) (including all significant models and sensitivity analyzes of the main relevant rating assumptions, the where applicable) used to determine credit rating are available in the information disclosure form(s) located here.

Information on the meaning of each rating category can be found here.

Additional information relating to this rating metric is available in the information disclosure form(s) referenced above. Additional information regarding KBRA’s policies, methodologies, grading scales and disclosures is available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a rating agency with the UK Financial Conduct Authority under the temporary registration scheme. In addition, KBRA is designated as the Designated Rating Agency 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.