NEW YORK--(BUSINESS WIRE)--Aug 30, 2018--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 17 classes of mortgage pass-through certificates from Flagstar Mortgage Trust 2018-5 (FSMT 2018-5), a prime RMBS transaction with both non-agency jumbo (66.8%) and high-balance conforming (33.2%) mortgage loans.

The FSMT 2018-5 pool comprises 726 first-lien, prime residential mortgage loans with an aggregate principal balance of $ $476,060,785 as of the cut-off date. The collateral consists entirely of fully-amortizing, fixed rate mortgages (FRMs), most of which possess a 30-year (99.9%) maturity term. The pool is characterized by significant borrower equity in each mortgaged property, as evidenced by the WA original LTV of 68.4% and WA original CLTV of 69.6%. The weighted average original credit score is 763, which is well within the prime mortgage range.

Notably, the FSMT 2018-5 transaction employed due diligence sampling on a portion of the underlying collateral, with full-scope due diligence (credit, compliance, valuation and data verification) on 30.0% of the pool (by loan count), while the remaining 70.0% of the loans did not receive any third-party review.

KBRA’s rating approach incorporated loan-level analysis of the mortgage pool through its Residential Mortgage Default and Loss Model, an examination of the results from third-party loan file due diligence, cash flow modeling analysis of the transaction’s payment structure, reviews of key transaction parties and an assessment of the transaction’s legal structure and documentation. This analysis is further described in our U.S. RMBS Rating Methodology.

For complete details on the analysis, please see our pre-sale report, 5, which was published on August 30, 2018 on .

Representations & Warranties Disclosure

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report available .

Related Publications: (available at )


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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

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CONTACT: Kroll Bond Rating Agency

Analytical Contacts:

Kristymarie Cariello, 646-731-2494



Patrick Gervais, 646-731-2426

Senior Director


Jack Kahan, 646-731-2486

Managing Director



SOURCE: Kroll Bond Rating Agency

Copyright Business Wire 2018.

PUB: 08/30/2018 05:48 PM/DISC: 08/30/2018 05:48 PM