NEW YORK–(BUSINESS WIRE)–KBRA assigns preliminary ratings to nine categories of certificates issued under the CoreVest American Finance 2022-1 (CAF 2022-1) securitization. This is the eighteenth transaction of this type issued by CoreVest American Finance.
CAF 2022-1 is a $313.4 million multi-borrower securitization backed by 82 conventional single-family (SFR) and multi-family rental loans. The loans are secured by mortgages on 2,958 rental units in 1,794 single family, 2-4 family and multi-family properties. The target basin includes 171 multi-family properties (1,003 units), which represents 33.7% of the total balance of the basin.
Overall, the underlying properties are located in or near 66 Central Statistical Areas (CBSAs) in 24 states. The top three CBSA exposures represent 36.4% of the pool balance and are New York-Newark-Jersey City, NY-NJ-PA (18.3%), Tampa-St. Petersburg-Clearwater, Florida (9.6%) and Corpus Christi, Texas (8.6%). The loans have principal balances ranging from $0.4 million (0.1%) to $30.6 million (9.7%) for the largest loan in the block. The five largest loans represent 27.3% of the initial pool balance, while the 10 largest loans represent 44.7% of the pool.
To facilitate analysis, KBRA has divided the underlying properties into two distinct subsets by property type. Sub-group 1 (1 to 4 units) is mainly composed of single-family rental homes and properties with 2 to 4 units (1,623 properties, 66.3%). Subgroup 2 (multifamily) is made up of properties with five or more units (171 properties, 33.7%). KBRA used its US single-family rental securitization methodology to value subgroup 1, while subgroup 2 was analyzed in a manner generally consistent with KBRA’s approach outlined in our property valuation methodology. US CMBS and our US CMBS multi-borrower rating methodology. . The results of these analyzes were then combined, and pool-level concentration and qualitative adjustments were then applied to determine the KBRA credit enhancement levels for the pool in question. The results of this analysis were then compared to the capital structure proposed by the issuer to assign ratings.
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Further information on key credit considerations, sensitivity analyzes which look at factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a driver key to the change in credit rating or rating outlook) can be found in the full rating report referenced above.
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Information on the meaning of each rating category can be found here.
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