PennyMac's residential investment property funding platform is preparing its sixth issuance of the year, selling $423,167 million to investors through the PMT Loan Trust 2026-INV6.

A June 23 closing date is expected for the deal, which offers a series of exchangeable, class A and B notes, which will pay coupons ranging from 6.00% on the A1 tranche to 5.00% on the A33 tranche, according to the Kroll Bond Rating Agency.

Investment properties account for 77.4% of the mortgages in the pool, and appraisal waivers were granted on 10% of the underlying collateral, KBRA said. Most of this segment, 70.8%, are considered to be business purpose loans, which exempts them from the Qualified Mortgage, Ability to Repay and TILA-RESPA Integrated Disclosure rules.

Most of the tranches, A1 through A27, are rated AAA from KBRA; and the A28 through A33 received AA+ ratings, according to the rating agency. The A-X30 through A-X30 are also rated AA+; and the B1, B2, B3, B4 and B5 tranches received ratings of AA, A-, BBB, BB+ and B+, respectively.

All the notes, from PMT 2026-INV6's super senior notes—A6, A18, A21 and A24—to the subordinate notes, will repay investors sequentially, according to KBRA.

BofA Securities is the deal's structuring lead, KBRA said, with ATLAS SP Securities of Apollo Global, Citigroup Global Markets, Goldman Sachs, Nomura Securities and co-lead manager and joint bookrunner.

The rating agency also noted that Santander US Capital Markets is the deal's co-manager.

Among the deal's structural features is a stop-advance feature. If any of the underlying mortgages is 120 days or more delinquent, then the servicer related to the severely delinquent mortgages—or the fiscal agent—does not have to advance any interest from it, KBRA.

The mortgages have an original FICO score of 775, with moderate leverage of a 74% original loan-to-value (LTV) ratio, KBRA said.

Borrowers have a debt-to-income ratio of 36.9%, median income of $227,507 and liquid reserves of $316,560 on a weighted average (WA) basis.