The transaction was first reported by Inside Mortgage Finance. A representative from Mutual of Omaha told HousingWire‘s Reverse Mortgage Daily that the company doesn’t have any additional information to provide at this time.
Morningstar DBRS assigned provisional ratings to the notes, with the senior Class A notes rated AAA and subordinate tranches rated from AA (low) to BBB (high). The ratings reflect the deal’s sequential structure, credit enhancement from subordinate bonds, and stress testing tied to home-price declines, borrower longevity and interest rates.
About two-thirds of the collateral is concentrated in California, with borrowers averaging 76 years old. The loans are nonrecourse, meaning losses are capped at the value of the underlying homes.
Celink is acting as the subservicer for the loan collateral. “Morningstar DBRS reviewed Mutual of Omaha Mortgage, Inc. and found the company to be an acceptable originator; Morningstar DBRS reviewed Celink and found the company to be an acceptable subservicer,” the report states.
