KBRA Assigns Preliminary Ratings to Verus Securitization Trust 2024-INV2 (VERUS 2024-INV2)
9 Aug 2024 | New York
KBRA assigns preliminary ratings to six classes of mortgage pass-through certificates from Verus Securitization Trust 2024-INV2 (VERUS 2024-INV2), an approximately $355.4 million investor cash flow non-prime RMBS transaction. The underlying collateral, comprising 885 rental property mortgages, is characterized by a significant concentration of loans underwritten using DSCRs. All the loans were originated for business purpose and are exempt from the Ability-to-Repay (ATR) and TILA-RESPA Integrated Disclosure (TRID) rules.
The loans in the VERUS 2024-INV2 pool are primarily fixed rate mortgages (88.6% of the pool) and exhibit a weighted average (WA) original credit score of 738, a WA original loan-to-value (LTV) and a WA original combined LTV (CLTV) of 64.0%. The WA original DSCR is approximately 1.08x coverage.
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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