KBRA Assigns Ratings to J.P. Morgan Mortgage Trust 2025-NQM1 (JPMMT 2025-NQM1)
31 Mar 2025 | New York
KBRA assigns ratings to 9 classes of mortgage-backed certificates from J.P. Morgan Mortgage Trust 2025-NQM1 (JPMMT 2025-NQM1).
JPMMT 2025-NQM1 is an RMBS transaction sponsored by JPMorgan Chase Bank, National Association and includes a meaningful concentration of collateral that KBRA considers to be “non-prime.” The $332.6 million RMBS transaction is collateralized by a pool of 616 residential mortgages, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) comprising 95.5% and 4.5% of the pool, respectively. The loans are classified as QM: Safe Harbor (APOR) (6.1%), QM: Rebuttable Presumption (APOR) (0.8%), non-qualified mortgages (non-QM) (42.0%) or exempt (51.1%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for business purposes or by a CDFI.
KBRA considers the loans in the subject pool to be non-prime due to certain loan or borrower characteristics, which include borrowers with blemished credit history and the use of bank statements and other forms of non-traditional/alternative income documentation.
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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