KBRA Assigns Preliminary Ratings to GCAT 2021-NQM1 Trust (GCAT 2021-NQM1)
NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to six classes of mortgage-backed notes from GCAT 2021-NQM1 Trust (GCAT 2021-NQM1), a $289.4 million non-prime RMBS transaction. The underlying collateral, comprising 535 residential mortgages, is characterized by a notable concentration of alternative income documentation, with 88.6% of the loans underwritten using 12 month or 24-month bank statements, DSCR, CPA letters with P&L statements, WVOE, No Ratio Investor, or Asset Depletion.
Approximately 48.3% of the loans were categorized as non-qualified mortgages (Non-QM). The remaining loans were categorized as exempt from the ATR/QM rule having been originated for a business purpose (i.e.,…
