The deal has an extensive capital structure, which is expected to repay investors by September 2055, according to DBRS. Notes will repay investors sequentially and subordination adds credit enhancement to the structure, the rating agency said.
GSMBS 2025-PJ4 is expected to close on April 30, with Raymond James & Associates joining
The deal has a collateral pool of 247 first-lien, fixed-rate mortgages that are fully amortizing, and which were originated in accordance with qualified mortgage rules, according to ratings analysts at Morningstar | DBRS. The loans have original maturities of 30 years, and only moderate leverage, with a weighted average (WA) loan-to-value ratio of 69.8%.
PennyMac Loan Services and CMG Mortgage originated 33.6% of the loans in the pool, while a series of other companies originated the rest, each accounting for less than 10% of the pool, according to DBRS. Meanwhile, PennyMac Loan Services, Newrez and Shellpoint Mortgage Servicing will service the mortgages, according to the rating agency.
On average, underlying borrowers took out $1.2 million mortgages, had relatively high incomes, $556,772, and high liquid reserves, $805,753, DBRS said.
On a WA basis, borrowers had FICO scores of 773, and original terms of 360 months, with three months of seasoning. Primary residences accounted for 87.1% of the mortgage pool, while second homes represented 12.9% of the loan pool, DBRS said.
Most of the tranches, from A1 through A26, are rated AAA from DBRS, while the B1 classes got AA ratings; while the B2 classes got A ratings; and the B3, B4 and B5 notes received ratings of BBB, BB and B, respectively.
