KBRA Assigns Preliminary Ratings to GCAT 2025-NQM1 Trust
25 Apr 2025 | New York
KBRA assigns preliminary ratings to six classes of mortgage pass-through notes from GCAT 2025-NQM1 Trust, a $438.2 million non-prime RMBS transaction. The underlying collateral, comprising 764 residential mortgages, is characterized by a significant concentration of loans underwritten using alternative income documentation. Borrowers in the subject pool possess a non-zero WA original credit score of 756 and exhibit modest equity in each mortgaged property, with WA LTV and combined LTV (CLTV) ratios of 69.5% and 69.5%, respectively.
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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