KBRA Assigns Ratings to J.P. Morgan Mortgage Trust 2025-HE1 (JPMMT 2025-HE1)
28 Feb 2025 | New York
KBRA assigns ratings to 6 classes of Mortgage Participation Pass-Through Certificates from J.P. Morgan Mortgage Trust 2025-HE1 (JPMMT 2025-HE1), a $357.5 million RMBS transaction sponsored by J.P. Morgan Mortgage Acquisition Corp. (J.P. Morgan) and FOCUS III Advisory, LLC (FOCUS) consisting mostly of second lien home equity line of credit (HELOC) loans. The underlying pool is seasoned approximately five months and comprises 4,741 loans, with United Wholesale Mortgage, LLC (UWM; 47.2%) and Better Mortgage Corporation (Better; 27.7%) representing the largest contributing originators. The HELOCs are interest-only (IO) adjustable-rate mortgages (ARMs), with IO terms of mostly ten years (94.7%). Most of the loans feature 20-year (91.1%) Amortization Terms, and HELOC initial draw windows of two (1.2%), three (89.5%), five (5.6%) or ten (3.8%) years. As of the January 31, 2025 cut-off date, the borrowers in the pool have drawn $498.4 million from a combined credit limit of $595.6 million for an aggregate utilization rate of 83.7%. The $357.5 unpaid principal balance represents the participation percentage allocated to JPMMT 2025-HE1 from the $498.4 million total drawn amount as of the cut-off date; participation rate equals 71.7%.
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