KBRA Releases Preliminary Ratings for CROSS 2025-H1 Trust

KBRA Assigns Ratings to CROSS 2025-H1 Mortgage Trust

KBRA has taken an important step by assigning preliminary ratings to ten classes of mortgage pass-through certificates from the CROSS 2025-H1 Mortgage Trust. This transaction, a significant RMBS issuance, has emerged under the CROSS framework guided by Hildene Capital Management, in collaboration with CrossCountry Mortgage and CrossCountry Capital.

Overview of the Mortgage Transaction

This notable transaction, valued at $515.3 million, is underpinned by a diverse pool of 991 residential mortgages primarily sourced from CrossCountry Mortgage. Among these, KBRA identifies a considerable focus on non-prime loans, accounting for 65.6% of the total mortgage pool. Furthermore, the mix includes a higher proportion of fixed-rate mortgages at 82.3%, while adjustable-rate mortgages make up the remaining 17.7% of the pool.

Methodology of Rating Analysis

KBRA's approach to rating these certificates included a thorough examination of the underlying mortgage pool using its proprietary Residential Asset Loss Model (REALM). This involved an in-depth loan-level analysis, empirical reviews from third-party due diligence audits, and comprehensive cash flow modeling to assess the structure of payments. Key transaction parties were also evaluated, ensuring robust legal documentation underlined the trust.

Transparency in Credit Ratings

For those wanting to delve deeper into the ratings and associated documents, relevant resources are readily accessible. This commitment to transparency helps maintain a clear understanding of how various factors may influence these credit ratings over time.

Significance of the Rating Action

The preliminary ratings assigned by KBRA highlight the credit quality and risk assessment of the transaction. By documenting these ratings, KBRA aims to provide meaningful insights to investors who are keen on understanding the intricacies of mortgage-backed securities and the risks associated with them.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) stands out as a comprehensive credit rating agency, having secured registration with the U.S. Securities and Exchange Commission as an NRSRO. Its branches in Europe and the UK hold recognized designations under respective regulatory authorities, asserting KBRA's global footprint and credibility.

Commitment to Quality Ratings

As a designated rating organization, KBRA offers expert insights tailored for various stakeholders, particularly in asset-backed securities. The agency places a strong emphasis on methodologies and rating scales that ensure transparency and reliability in its credit assessments.

Frequently Asked Questions

What is the significance of KBRA's ratings for CROSS 2025-H1?

The ratings provide essential insights into the credit quality and risks involved in the mortgage-backed securities, guiding investors in their decision-making process.

How are the ratings determined?

The ratings are derived from detailed analyses, including loan-level evaluations and cash flow modeling, to assess the payment structure.

What type of loans are included in this mortgages pool?

The pool consists largely of residential mortgages, with a significant portion classified as non-prime loans, reflecting a diverse risk profile.

Who sponsors the CROSS 2025-H1 Mortgage Trust?

The trust is sponsored by Hildene Capital Management in collaboration with CrossCountry Mortgage and CrossCountry Capital.

What is the role of KBRA in the finance industry?

KBRA plays a vital role by providing credible credit ratings and deep analytical insight, enhancing transparency in the structured finance market.

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