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The company expects to report net income between $205 million and $220 million, with positive servicing results offset by an originations miss, analysts said.
A new cohort of lenders, Dort Financial Credit Union, Gesa Credit Union and Liberty Federal Credit Union originated the loans and contributed them to the collateral pool.
Smaller and largely unrated non-investment grade entities compose the assets, but the historical managed portfolio and securitized delinquencies and losses remain low, even during recessions.
Persistently high mortgage rates will shrink securitization volume by dampening home sales and pushing more buyers toward all-cash purchases.
Super senior tranches benefit from credit enhancement of 15.03%, KBRA said. Senior notes that are not interest only—A19 through A25—benefit from credit enhancement levels of 8.20%.
