Understanding KBRA's Preliminary Ratings on CMLTI 2025-1

Overview of KBRA’s Ratings for CMLTI 2025-1

KBRA has assigned preliminary ratings to 29 classes of mortgage pass-through certificates from Citigroup Mortgage Loan Trust 2025-1, commonly referred to as CMLTI 2025-1. This transaction is significant as it is backed by a pool of prime residential mortgages across various types of properties, including owner-occupied, secondary, and investment properties. The total principal balance of the underlying mortgage pool is approximately $396.6 million.

Composition of the Mortgage Pool

The CMLTI 2025-1 pool comprises 308 fixed-rate mortgages, highlighting a robust mix that supports the securities being offered. Notably, a majority of these loans, approximately 98.3%, are non-agency loans, making them distinct in the current mortgage-backed securities market. Moreover, 41.7% of the loans originated from PennyMac Loan Services, LLC, while 48.4% will be managed by Fay Servicing, LLC, suggesting a blend of experienced servicers.

Importance of Loan-Level Analysis

In conducting the ratings, KBRA's approach involved detailed loan-level analysis using its Residential Asset Loss Model (REALM). This rigorous framework allows KBRA to evaluate the potential risks associated with each mortgage loan comprehensively. The final ratings reflect a combination of cash flow modeling, third-party due diligence assessments, and thorough examinations of the transaction's legal framework.

Rating Methodology Insights

KBRA’s U.S. RMBS Rating Methodology is instrumental in the rating process. By focusing on key transaction parties and analyzing the legal structure, KBRA ensures a transparent and informed approach to rating these securities. Investors can feel assured knowing that a detailed understanding backing these loans has been established.

Accessing Ratings and Reports

To explore KBRA's ratings along with relevant documents, interested parties should access their official resources. Although specific links to these documents have been omitted from this summary, comprehensive schoolings on the ratings can typically be found directly through KBRA's publication platform.

Additional Resources and Methodologies

For a deeper dive into related publications, methodologies used by KBRA, and disclosures about credit considerations, stakeholders can often find supportive documentation through KBRA’s online repository. This access ensures that those engaged in mortgage-backed securities can stay informed about developing methodologies, including their ESG Global Rating Methodology and other structured finance methodologies.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a prominent player in the credit rating industry. Fully registered and recognized as an authorized credit rating agency in multiple jurisdictions, KBRA provides comprehensive and reliable rating services. Their aim is to support transparency in the credit markets by using rigorous methodologies that uphold integrity and clarity in ratings. KBRA is registered with the U.S. Securities and Exchange Commission (SEC) as an NRSRO, and it also holds various designations across international regulatory bodies.

Frequently Asked Questions

What is CMLTI 2025-1?

CMLTI 2025-1 refers to Citigroup Mortgage Loan Trust 2025-1, a prime residential mortgage-backed securities transaction.

What role does KBRA play in this process?

KBRA provides preliminary ratings for various classes of mortgage pass-through certificates, which helps investors make informed decisions.

How many loans are included in the CMLTI 2025-1 pool?

The CMLTI 2025-1 pool consists of 308 fixed-rate mortgages.

What percentage of loans are non-agency loans?

Approximately 98.3% of the loans in the pool are classified as non-agency loans.

Where can I find more information on these ratings?

Detailed ratings and related documents can typically be accessed through KBRA's official publications.

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