HOMES returns to raise $489.7 million from Non-QM pool
The class A notes include first cash flow and last cash flow tranches, both of which benefit from 28.31% in credit enhancement.
The class A notes include first cash flow and last cash flow tranches, both of which benefit from 28.31% in credit enhancement.
The notes will be issued off of a pool of 3,525 first- and junior-lien revolving HELOCs that were recently originated. The deal will repay investors on the 25th of each month, and notes have a stated final maturity date of July 2056.
He joins from Stifel, where he was a managing director, and is part of a shift that pushes Jim Baldo to senior managing director in fixed income sales.
SEMT 2026-INV4's notes are expected to pay coupons including 5.00%, 5.50% and 6.00% on the super senior tranches and one super senior, floater exchangeable tranche will pay 5.39%.
The deal's structure includes debt service coverage ratio (DSCR) triggers that will deposit excess cash is deposited in the cash trap reserve and loan-to-value tests.
The structure contains seven tranches of class A notes, including two tranches for first cash flow and last cash flow, both initially exchangeable.
Issuance of securitized affordable-housing bonds reached $4.5 billion across 37 deals through August 13, already surpassing the $3.4 billion issued across 25 deals in all of 2025.
Used vehicles collateralize 53.01% of the underlying loans, and loans in OCCU 2026-1 have a balance of $34,185, with an annual percentage rate (APR) of 7.54%.
Jones will lead the firm's asset-backed securities (ABS) and collateralized loan obligation (CLO) capital markets efforts, while Rheault will be head of the business' syndicate business.
Suna is the second structured finance partner to join Hogan Lovells Cadwalader in the last month.
Collateral quality is still generally in line with previous CRVNA series, however, and very recent Carvana pools have shown improvement in net credit losses from previous downturns.
The deal will raise about $175 million in securitized bonds, backed by a pool of residential investors loans (42.1%) and traditional small-balance commercial (SBC) mortgages.
Aqua Finance's credit enhancements include a sequential pay structure until the class A credit enhancement period is over.
Despite the variety of loans in the pool, the vast majority of assets are considered qualified mortgages, with only 10.9% considered non-QM.
The current deal comes to market with a shorter revolving period and a smaller collateral pool, but other traits are similar to previous deals.
The structure includes a stop-advance feature, which will prevent the servicer from providing scheduled interest and principal on loans that are 120 days or more delinquent.
Assets have a non-zero credit score is 631, notably lower than previous transactions. Also, a slight majority of borrowers, 53.23%, have credit scores of 660 or lower.
The current pool's major loan characteristics were higher than that those seen on the RKTL 2026-2, with 60-month loans representing a higher concentration of the current pool (77.0%) compared with 73.7% on the previous deal.
The aircraft assets will be prefunded, otherwise, the proceeds will refinance 15 vintage aircraft.
Interest will be repaid sequentially. Scheduled principal will be paid based on the scheduled outstanding note balance for the applicable payment period and the note balances.
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