Fitch Assigns Expected Ratings To Non-QM Offering STAR 2022-4
Summary
Fitch said it expects to rate the residential mortgage-backed certificates to be issued by Starwood Mortgage Residential Trust 2022-4, series 2022-4 (STAR 2022-4), as follows: The certificates are supported by 673 loans with a balance of approximately $357.4 million as of the cutoff date. Of the loans in the pool, 54.5% are designated as non-qualified mortgages (Non-QMs), while 45.5% are not subject to the Consumer Finance Protection Bureaus Ability to Repay Rule (ATR Rule). The class A-1 certificates will be fixed rate and capped at the net weighted average coupon (WAC) and will have a step-up feature where the coupon will equal the lesser of (a) the sum of (i) the class A-1 fixed rate (ii) 1.00% and (b) the net WAC Rate for the related Distribution Date; class A-2 and A-3 certificates are fixed rate and capped at the net (WAC), and the class M-1, B-1, B-2 and B-3 certificates are based on the net WAC. The collateral consists of 15-year, 30-year, fixed-rate fully amortizing loans (77.4%); 17.3% fixed-rate loans with an initial interest-only (IO) term; 5.4% 7/1 and 10/1 adjustable-rate mortgages (ARMs) with an initial IO term. The pool is seasoned at approximately four months in aggregate, as determined by Fitch.