Press Release|RMBS


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.

To access rating and relevant documents, click here.

Click here to view the report.

Related Publications



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

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

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

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. 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.

Doc ID: 1003865

805 Third Avenue
29th Floor
New York, NY 10022
+1 (212) 702-0707
Contact Us

© 2010-2024 Kroll Bond Rating Agency, LLC. All Rights Reserved. Kroll Bond Rating Agency, LLC is not affiliated with Kroll Inc., Kroll Associates Inc., KrollOnTrack Inc., or their affiliated businesses.