A pool of almost one thousand primarily fixed-rate, residential mortgages will secure $381.8 million in residential mortgage-backed securities (RMBS) from the PRKCM 2026-AFC7, in a deal sponsored by the Park Capital Management.
A meaningful concentration of the pool is considered non-prime, with underwriting tied to debt service coverage ratio (DSCR) and profit and loss and a CPA letter accounting for 41.5% and 25.9% of the underlying loans, according to Kroll Bond Rating Agency.
Donna M. Mitchell is a financial journalist based in the New York metro area with expertise covering structured finance, commercial real estate, and wealth management. Her work has appeared … Read full bio
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The three senior A1 notes are expected to pay coupons of 6.78%, while the A-1A1 and A-1B1 tranches will pay coupons of 6.28%, and the A-1A2 and A-1B2 tranches will pay coupons of 6.03%.
Overcollateralization and excess spread, the main drivers of VALT 2026-C's credit enhancement, both increased from levels seen on the series 2026-B.
Among the deal's key structural features is a payment priority where the series 2026-1, class A2 notes have a scheduled amortization of 1.0% annually.
The 2026-1 series will raise $913.5 million in securitized bonds with its first liquidity funding note in the structure, committing up to $28 million.
The pool has more prime borrowers buying more new vehicles and a higher concentration of vehicles with electric engineering.
