KBRA Assigns Ratings to EFMT 2025-CES2
27 Mar 2025 | New York
KBRA assigns ratings to 8 classes of Certificates from EFMT 2025-CES2, a $290.1 million RMBS transaction, as of the cut-off date, sponsored by EFMT Sponsor LLC and consists of 3,581 newly originated closed-end second lien mortgages (CES; 100.0%). The largest originators in the underlying pool are NewRez LLC (73.8%) and loanDepot.com, LLC (12.9%). The majority of the collateral (99.6%) is characterized by fully amortizing, fixed-rate mortgages (FRMs) with predominantly 20-year (72.9%), 30-year (22.4%), 15-year (4.6%), and 10-year (0.1%) maturity terms.
KBRA’s rating approach incorporated loan-level analysis of the mortgage pool through its Residential Asset Loss Model (REALM), an examination of the results from third-party loan file due diligence, cash flow modeling analysis of the transaction’s payment structure, reviews of key transaction parties and an assessment of the transaction’s legal structure and documentation. This analysis is further described in our U.S. RMBS Rating Methodology.
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