KBRA Assigns Preliminary Ratings to OBX 2025-HE1 Trust
18 Mar 2025 | New York
KBRA assigns preliminary ratings to six classes of mortgage-backed notes from OBX 2025-HE1 Trust. OBX 2025-HE1 Trust is the first RMBS transaction issued by Onslow Bay Financial LLC (Onslow Bay) as seller/sponsor consisting of first lien (0.5%) and second lien (99.5%) home equity line of credit (HELOC) loans. The underlying pool is seasoned approximately six months and comprises 2,414 loans, with United Wholesale Mortgage, LLC (UWM; 53.6%), loanDepot.com LLC (loanDepot; 30.0%), and Mission Loans, LLC (Mission Loans; 11.5%) as the largest contributing originators. The HELOCs are interest-only (IO) adjustable-rate mortgages (ARMs), with initial draw windows of three (95.9%), five (3.1%) or ten (1.0%) years and IO terms of ten years. After the IO period, most loans feature 17-year (84.2%) or 7-year (11.7%) amortization terms. As of the March 1, 2025 cut-off date, the borrowers in the pool have drawn $216.5 million from a combined credit limit of $266.0 million for an aggregate utilization rate of 81.4%.
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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