A pool of 478 first-lien, fixed-rate residential mortgages will secure $548.1 million in pass-through certificates from the Chase Home Lending Mortgage Trust, series 2024-5.
The collateral mortgages are fully amortizing with original terms of mainly 30 years to maturity, and a weighted average (WA) loan age of seven months, according to DBRS Morningstar. Almost the entire pool, 99.1%, are traditional, nonagency, prime jumbo mortgage loans, the rating agency said.
J.P. Morgan Chase Bank originated all of the pool’s mortgage assets, while J.P.Morgan Securities is the notes’ initial purchaser. The transaction will issue and repay noteholders through a senior-subordinate, shifting-interest cash flow capital structure that includes performance structures and credit enhancement floors.
Among the deal’s credit strengths, the underlying assets have low loan-to-value (LTV) ratios, strong borrower credit and full documentation on all the loans. Aside from being composed entirely of fixed-rate mortgages, the pool has no investment property loans, and no interest-only (IO) loans. On a weighted average (WA) basis, the original, cumulative LTV is 73.9% and a debt-to-income ratio of 35.5%, the rating agency said.
On average, the loans have a balance of $1.1 million, a FICO score of 771, on a WA basis. The loans have an original term of 360 months and seasoning of seven. Ratings analysts said 94.8% of the loans will fund the purchase of a primary residence, and the rest of the mortgages are refinances and cash-out transactions, DBRS said. Also on a WA basis, the loans have a coupon of 6.3%, DBRS said.
Primary residences account for 89.2% of the pool, while second homes account for 10.8% of the pool.
On a WA basis, the borrowers have an annual income of $578,279, and non-zero liquid reserves of $574,888.
DBRS will assign ratings of AAA to the A2 through A-X-1 notes; AA to the B1 notes; A to the B2 notes; BBB to the B3 notes; BB to the B4 notes and B to the B5 notes.
