KBRA Announces Ratings for CROSS 2024-H8 Mortgage Trust Deal

Author: Henry Turner Updated: 12-10-2024 03:43 PM

KBRA's Preliminary Ratings on CROSS 2024-H8 Mortgage Trust

In a significant move, KBRA has assigned preliminary ratings to ten classes of mortgage pass-through certificates from the CROSS 2024-H8 Mortgage Trust. This transaction marks an essential addition to the Hildene-CCC Loan Acquisition, LLC (CROSS) shelf, initiated by Hildene Capital Management alongside CrossCountry Mortgage and CrossCountry Capital.

Overview of the CROSS 2024-H8 Mortgage Trust

The CROSS 2024-H8 mortgage trust represents a substantial $403.4 million pool, which is collateralized by 824 residential mortgages that have been issued by CrossCountry Mortgage. Notably, a significant portion of this pool—68.9%—is categorized as “non-prime,” presenting both potential risks and opportunities in today's financial landscape.

Composition of the Mortgage Pool

The mortgage pool within CROSS 2024-H8 primarily consists of fixed-rate mortgages (85.2%) and a smaller percentage of hybrid adjustable-rate mortgages (14.8%). This diverse composition allows for a variety of risk profiles and return expectations, catering to a wide range of investor appetites.

Rating Methodology Employed by KBRA

KBRA's rigorous rating process considered several critical factors, including an in-depth loan-level analysis through its Residential Asset Loss Model (REALM). Not only did they evaluate the loan mortgage pool’s quality, but they also conducted thorough due diligence, cash flow modeling, and assessments of the transaction’s legal structure.

Legal and Documentation Review

The review of key transaction parties, coupled with a clear examination of the documentation, is crucial. This ensures that all potential risks are measured and accounted for in this mortgage-backed securities transaction.

Accessing Ratings and Reports

For those looking to dive deeper into the specifics of the ratings assigned and to access relevant documentation, you can explore different reports and ratings offered by KBRA. This provides a transparent overview of all significant aspects influencing the mortgage trust.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), operates as a full-service credit rating agency that is recognized by various regulatory bodies. Their standing as a Nationally Recognized Statistical Rating Organization (NRSRO) in the United States underscores their influence in the rating agency space. Moreover, KBRA holds recognition as a Credit Rating Provider by the National Association of Insurance Commissioners, emphasizing the trust and reliability they instill in the market.

Frequently Asked Questions

What ratings did KBRA assign for the CROSS 2024-H8 Mortgage Trust?

KBRA assigned preliminary ratings for ten classes of mortgage pass-through certificates linked to the CROSS 2024-H8 Mortgage Trust.

Who sponsored the CROSS 2024-H8 Mortgage Trust transaction?

The transaction was sponsored by Hildene Capital Management involved with CrossCountry Mortgage and CrossCountry Capital.

What is the size of the CROSS 2024-H8 Mortgage Trust?

The total transaction size of the CROSS 2024-H8 Mortgage Trust is $403.4 million.

What percentage of the mortgage pool is categorized as non-prime?

A substantial 68.9% of the mortgage pool is considered “non-prime,” indicating a diverse risk profile within the trust.

How does KBRA conduct its rating assessments?

KBRA employs a comprehensive approach, which includes loan-level analysis, due diligence review, cash flow modeling, and thorough legal assessments.

About The Author

Hi there, As a writer and financial specialist, Henry Turner is passionate about guiding people through the complex world of finance. Having worked in finance for many years, I am an expert at simplifying difficult financial ideas into understandable, useful insights for my blog and articles. My goal is to arm you with the confidence and information you need to make wise financial choices.

Writing for a number of financial blogs has allowed me to interact with readers from novice investors looking for fresh ideas to seasoned investors starting their financial journeys. My mission is to enable everyone to understand and access finance, so enabling you to confidently and clearly reach your financial goals. I appreciate you traveling with me toward success and financial literacy.

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