KBRA Assigns Preliminary Ratings to RFM Re-REMIC Trust 2024-FRR2

KBRA is pleased to announce the assignment of preliminary ratings to six classes of RFM Re-REMIC Trust 2024-FRR2. RFM Re-REMIC Trust 2024-FRR2 is a re-securitization of two principal-only and two interest-only certificates (the collateral securities) from two separate fixed-rate Freddie Mac K-Series multifamily securitizations: FREMF 2019-K100 and FREMF 2021-K123 (the underlying trusts). The collateral securities for this re-securitization consist of the most subordinate principal-only class from each underlying trust and two interest-only certificates from the FREMF 2021-K123 underlying trust.

The re-securitization trust will issue ten classes of certificates, issued in two separate groups with each group corresponding to one underlying trust. Additionally, the re-securitization trust will issue one class of residual certificates related to both groups. Cash flow from each group of collateral securities will be used to make payments to the corresponding group of trust certificates in sequential order, after required allocations for trust expenses and fees. Each group of certificates is only entitled to distributions from amounts received with respect to the collateral securities from the underlying trust related to that group and is not entitled to amounts received by the trust with respect to the other group. Of the ten classes of trust certificates, seven are entitled to principal only payments and three are entitled to principal and interest payments. With respect to each group, any losses which impact the collateral securities will in turn be borne by the re-securitization trust certificates in reverse sequential order.

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