New York City–( ORGANISATION WIRE)– Kroll Bond Ranking Agency (KBRA) designates preliminary rankings to 18 classes of Speed Commercial Capital 2019 -3 (VCC 2019 -3) mortgage-backed certificates.
VCC 2019 -3 is a $1625 million securitization collateralized by 505 small balance industrial loans protected by 512 domestic rental or business realty (CRE) residential or commercial properties. The swimming pool is comprised of 282 set rate home mortgages (598%of the overall pool) and 223 adjustable rate home mortgages (402%). The loans have a typical outstanding primary balance of $321,873 which range from $13,158(0.01%) to $2.1 million (1.3%). The weighted typical appraisal loan-to-value ratio (LTV) and FICO rating for the swimming pool are 65.3%and 703, respectively.
The underlying properties are situated in or near 110 Core Based Analytical Locations (CBSAs) throughout 37 states and the District of Columbia. The top-three CBSAs represent 39.7%of the portfolio and include New York-Newark-Jersey City, NY-NJ (221%), Los Angeles-Long Beach-Anaheim, CA (9.6%), and Miami-Fort Lauderdale-West Palm Beach, FL (8.0%). The three biggest state direct exposures represent 56.9%of the portfolio and include California (217%), New York (178%), and Florida (174%).
The residential properties (sub-pool 1) are consisted of 1-4 unit rental properties (294 properties, 45.3%of the overall pool balance). The industrial properties (sub-pool 2) are mostly comprised of mixed use (58 possessions, 14.0%of CRE), retail (44 properties, 10.4%), multifamily residential or commercial properties with 5 or more units (36 properties, 8.6%), industrial/warehouse (21 properties, 7.5%), workplace (32 assets, 6.6%), automotive (24 assets, 6.1%) homes. The provider assigned 18 possessions (3.5%of CRE) a property kind of industrial condo. Nevertheless, KBRA reclassified this home type as industrial/warehouse, workplace or retail, which represents each possession’s core use.
KBRA relied on its RMBS and CMBS methods in order to evaluate the transaction. In doing so, KBRA divided the pool into two distinct loan groupings to which we applied property (sub-pool 1: 287 loans, 45.3%of the overall pool balance) and industrial (sub-pool 2: 218 loans, 54.7%) analyses. KBRA determined losses at each ranking classification for each of the sub-pools which were integrated to reflect the quality of the security, diligence, and details quality relative to typical RMBS and CMBS transactions. The losses were subsequently included into our money flow modeling, which was used to examine the deal’s credit improvement levels in the context of its customized pro rata structure.
For total information on the analysis, please see our pre-sale report, Velocity Commercial Capital 2019 -3 released at www.kbra.com The initial ratings are based upon info known to KBRA at the time of publication. Details got subsequent to this release could lead to the assignment of ratings that differ from the preliminary ratings.
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Associated Publications: (available at www.kbra.com).
- Speed Commercial Capital 2019 -3 Pre-Sale Report
- U.S. RMBS Rating Method
- Residential Mortgage Default and Loss Model
- U.S. CMBS Residential Or Commercial Property Examination Method
- U.S. CMBS Multi-Borrower Score Methodology
- Method for Score Interest-Only Certificates in CMBS Deals
- Global Structured Finance Counterparty Methodology
About KBRA and KBRA Europe
KBRA is a full-service credit rating firm signed up 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 companies of asset-backed securities to file a short type prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Coverage Commissioners as a Credit Score Provider, and is a certified Credit Score Company (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Score Agency Europe Limited is registered with ESMA as a CRA.