KBRA Assigns Preliminary Ratings to Morgan Stanley Residential Mortgage Loan Trust 2024-NQM3 (MSRM 2024-NQM3)
17 Sep 2024 | New York
KBRA assigns preliminary ratings to 10 classes of mortgage-backed certificates from Morgan Stanley Residential Mortgage Loan Trust 2024-NQM3 (MSRM 2024-NQM3), a $399.6 million non-prime RMBS transaction. The underlying collateral, comprising of 863 residential mortgages, is characterized by a notable concentration of alternative income documentation (82.8%). The majority of the loans are either classified as non-qualified mortgages (Non-QM) (45.7%) or exempt (47.2%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes.
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.
To access rating and relevant documents, click here.
Click here to view the report.