The securities are backed by more than 450 jumbo and GSE-eligible loans
Loans underwritten by loanDepot.com are fully backing a transaction of residential mortgage-backed securities for the first time.
Moody's Investors Service has assigned provisional ratings to residential mortgage-backed securities (RMBS) issued by Mello Mortgage Capital Acceptance 2018-MTG1.
The transaction consists of prime jumbo loans underwritten to loanDepot's guidelines and high-balance, GSE-eligible loans underwritten to Freddie Mac or Fannie Mae guidelines with loanDepot overlays.
The securitization is of 453 primarily 30-year, first-lien, fixed-rate prime residential mortgage loans. Two loans have a 25- year term. Loans in the pool include 227 GSE-eligible high balance and 226 prime jumbo mortgages. By loan balance, 40.7% are GSE-eligible high balance loans while 59.3% are prime jumbo loans.
Moody’s provisional ratings range from (P)Aaa (sf) to (P)B2 (sf), which are based on the certificates on the credit quality of the mortgage loans as well as the structural features of the transaction, among other factors.
Cenlar will service the loans and Wells Fargo Bank will be the master servicer. LoanDepot will be the servicing administrator and responsible for servicer advances, with the master servicer stepping in if loanDepot cannot fulfill its obligation to advance scheduled principal and interest.
