KBRA assigns preliminary ratings to Provident Funding Mortgage Trust 2021-INV1 (PFMT 2021-INV1)

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NEW YORK–(COMMERCIAL THREAD) – Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 27 classes of mortgage transfer certificates from Provident Funding Mortgage Trust 2021-INV1 (PFMT 2021-INV1), the first transaction by the sponsor to be fully guaranteed by the eligible investment real estate credit agency. The pool comprises 1,203 fixed rate first residential mortgages with a total principal balance of $ 296.1 million as of the July 1, 2021 deadline. The pool is characterized by significant borrower equity in each property mortgaged, as evidenced by the initial WA LTV of 59.1% and the initial WA CLTV of 59.1%. The initial weighted average credit score is 778, which is well within the range for prime mortgages.

KBRA’s scoring approach included loan-level analysis of the mortgage pool through its KBRA RMBS credit model, review of due diligence results of third-party loan files, cash flow modeling analysis the payment structure of the transaction, reviews of key parties to the transaction, and an assessment of the legal structure and documentation of the transaction. This analysis is described in more detail in our US RMBS rating methodology.

Click here to view the report. To access the assessments and relevant documents, click here.

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Disclosures

Further information on key credit considerations, sensitivity analyzes that examine the factors that may affect these credit ratings and how they might lead to an upgrade or downgrade, and ESG factors (when they are a key factor in changing the credit rating or rating outlook) can be found in the full rating report mentioned above.

A description of all substantially significant sources that were used to prepare the credit rating and information about the method (s) (including significant models and sensitivity analyzes of relevant key rating assumptions, if any) used to determine The credit rating is available in the Information Disclosure Form (s) located here.

Here you will find information about the meaning of each rating category.

Further information relating to this rating measure is available in the information disclosure form (s) referenced above. Additional information regarding KBRA’s policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a credit rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a credit rating agency with the UK Financial Conduct Authority under the temporary registration regime. In addition, KBRA is appointed as the designated rating agency by the Ontario Securities Commission for issuers of asset-backed securities to file a simplified prospectus or a shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.


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