The rating agency says there is significant recourse to Caliber in the event that issuers cannot make required note payments. In one important credit vulnerability, the deal has limited bankruptcy remoteness. In another plus, the servicer has access to an array of subservicers, which can continue servicing the notes, should the servicer on the FNMA portfolio fail. The term note maturity is also relatively short, and has a scheduled amortization term, which KBRA considers to be a credit strength. Issuers will have the ability to post collateral to resolve collateral value deficiencies that may arise. It will be calculated based on the proportion of current and delinquent loans and is the maximum that can be deducted from MSR value on termination. In the event that Fannie Mae terminates the servicer agreement, the acknowledgment agreement (AA) grants the collateral agent the right to a portion of surplus amounts based on sale proceeds, among other conditions.Ī stop-loss cap is in place on the notes. The term, fixed-rate notes have a default rate of 1.0%, and a stated maturity date of March 25, 2027.Ĭaliber’s financial strength is among the deal’s key rating drivers, KBRA said. Preliminary ratings on the notes, which will be issued through a single class, are ‘BBB-‘ KBRA said. The MSRs include net servicing fees, as well as earnings on permitted investments, net of interest, that are due on the borrower and bank fees, according to KBRA. Assets in the collateral pool represent a portion of the servicing fees payable to Caliber as Servicer under the Fannie Mae Lender Contract. The servicer, Caliber Home Loans, also supports the deal to ensure that schedule principal and interest are repaid, according to a pre-sale report from Kroll Bond Rating Agency. Caliber FNT Excess Owner is poised to issue notes that will raise about $370 million in interests in mortgage servicing rights (MSRs), which are related to Fannie Mae-owned mortgage loans that Caliber services.
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