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The super senior and senior support tranches notes will repay investors on a pro rata basis, while the A2 through B3 notes repay investors sequentially.
The public and large institution segment make up 89.7% of obligors, up from the 87.7% seen in DEFT 2025-2, an increase that was driven largely by an increase in the large enterprise institution segment.
The deal increased its initial credit enhancement levels across the board, with the A-, BBB and BB- notes benefiting from levels of 21.89%, 1.89% and 5.74%, respectively.
Total initial credit enhancement increased to 11.40% for the class D notes, from 11.25%. It also decreased for classes B, C and E, and levels on the class A notes stayed the same.
The increase in purchase volume was not enough to offset the drop in refinance application submissions as conventional rates increased week-over-week.
