KBRA Assigns Preliminary Ratings to FMC Issuer Trust-FMSR, MSR Collateralized Notes, Series 2024-FT1
2 Oct 2024 | New York
KBRA assigns a preliminary rating of ‘BBB- (sf)’ to the Series 2024-FT1 Note from FMC Issuer Trust-FMSR, master trust issuer of notes backed by a participation certificate representing an interest in MSRs that are created on mortgage loans owned by Fannie Mae or otherwise included in Fannie Mae MBS and serviced by FMC. The participation interest represent an interest in a portion of servicing fees payable to FMC 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 FMC (KBRA Rating: BB+/Stable) as obligor under a repo facility in support of the Issuer’s rights to MSRs granted by Fannie Mae to FMC with certain transaction features providing one notch uplift on the rating of the notes. The notes are not a direct debt obligation of FMC or its affiliates; however, FMC’s obligations under the PC Repurchase Agreement creates a significant indirect dependency on FMC to make payments on the offered notes.
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