KBRA Assigns Preliminary Ratings to PMT Issuer Trust - FMSR and PMT Co-Issuer Trust I - FMSR, Series 2024-FT1 Notes
25 Jun 2024 | New York
KBRA assigns a preliminary rating of ‘BBB- (sf)’ to the Series 2024-FT1 Term Notes from PMT Issuer Trust – FMSR and PMT Co-Issuer Trust I - FMSR, master trust issuers of notes backed by participation certificates evidencing participation interests in MSRs that are created on mortgage loans originated or purchased by PMC. The participation interests represent an undivided interest in a portion of servicing fees payable to PMC as Servicer under the Fannie Mae Lender Contract, the agreement pursuant to which the Servicer performs loan servicing functions and is entitled to retain servicing fees and to collect certain ancillary income in accordance with the Fannie Mae Guide.
The rating is primarily dependent on the credit rating of PMT (KBRA Rating: BB+/Stable) as repurchase guarantor under a repo facility in support of the Issuers' rights to MSRs granted by Fannie Mae to the Servicer, with certain transaction features providing one notch uplift on the rating of the notes. The notes are not a direct debt obligation of PMC or its affiliates; however, PMT’s guarantee of PMC’s and PMH's obligations under the PC Repurchase Agreement creates a significant indirect dependency on PMT to make payments on the offered notes.
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