KBRA Assigns Preliminary Ratings to J.P. Morgan Mortgage Trust 2023-HE3 (JPMMT 2023-HE3)
20 Dec 2023 | New York
KBRA assigns preliminary ratings to 7 classes of Mortgage Participation Pass-Through Certificates from J.P. Morgan Mortgage Trust 2023-HE3 (JPMMT 2023-HE3), a $257.8 million RMBS transaction sponsored by J.P. Morgan Mortgage Acquisition Corp. and FOCUS III Advisory, LLC. The transaction consists entirely of second lien home equity lines of credit (HELOCs). The underlying pool is seasoned approximately two months and comprises 3,002 loans, with United Wholesale Mortgage, LLC (63.1%) and loanDepot.com, LLC (27.5%) representing the largest contributing originators. The HELOCs are interest-only (IO) adjustable-rate mortgages, with IO terms of mostly ten years. Most of the loans feature 20-year repayment periods after initial draw windows of three or ten years. As of the cut-off date, the borrowers in the pool have drawn $277.3 million from a combined credit limit of $322.8 million for an aggregate utilization rate of 85.9% and a weighted average (WA) utilization rate of 91.1% (the $257.8 million unpaid principal balance represents the participation percentage allocated to JPMMT 2023-HE3 from the $277.3 million total drawn amount.
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