KBRA Affirms Ratings for FMC GMSR ISSUER TRUST, MSR COLLATERALIZED NOTES
15 Apr 2024 | New York
KBRA affirms all outstanding rated classes for FMC GMSR ISSUER TRUST, MSR COLLATERALIZED NOTES.
KBRA’s ratings are primarily driven by the credit rating of Freedom Mortgage Corporation (“FMC”) (KBRA Rating: BB+/Stable) as repurchase obligor under a repo facility in support of the Issuer’s mortgage servicing rights (“MSRs”) granted by Ginnie Mae to FMC, with certain transaction features, such as (i) the alignment of interest between FMC, Ginnie Mae, and the VFN and term noteholders, (ii) the potential ability to transfer servicing in the event of a FMC default, (iii) the existence of the Ginnie Mae Acknowledgment Agreement, and (iv) the requirement that the borrowing base be trued up monthly, providing slight uplift on the rating of the notes.
KBRA’s rating approach for the rated notes utilized its U.S. Residential Mortgage Company Rating Methodology, published November 29, 2022. KBRA’s U.S. Residential Mortgage Company Rating Methodology incorporates an analysis of both quantitative and qualitative determinants, as well as that of Holding Company Ratings, Ownership Considerations and Capital Instruments in determining ratings. Quantitative rating determinants include (1) Funding & Liquidity (2) Capital (3) Profitability & Cash Flow (4) Asset Quality. Qualitative rating determinants include (1) Risk Management (2) Liquidity Management (3) Management Profile, Strategy and Business Diversification (4) Operating Environment.
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Related Publications
- FMC GMSR ISSUER TRUST, MSR COLLATERALIZED NOTES, Series 2020-GT1
- FMC GMSR ISSUER TRUST, MSR COLLATERALIZED NOTES, Series 2021-GT1
- FMC GMSR ISSUER TRUST, MSR COLLATERALIZED NOTES, Series 2021-GT2
- FMC GMSR ISSUER TRUST, MSR COLLATERALIZED NOTES, Series 2022-GT1
- FMC GMSR ISSUER TRUST, MSR COLLATERALIZED NOTES, Series 2022-GT2
- KBRA Assigns Ratings to FMC GMSR Issuer Trust, MSR Collateralized Notes, Series 2019-VF1, Series 2020-PIAVF1 and Series 2020-SAVF1
- FMC GMSR ISSUER TRUST, MSR COLLATERALIZED NOTES, Series 2024-SAT1